Analysis On The Motivation And Consequences Of Introducing State-owned Capital Into Environmental Protection Enterprises

Private environmental protection enterprises are an indispensable part of China’s economy and an important engine of China’s economic development in recent years.In addition to creating high economic value,they have also made great contributions to the field of ecological and environmental protection.In the past,they were the first pioneers in the environmental protection industry.At present,they are the new force in tackling key problems of pollution.They have played a great role in promoting technological innovation and improving environmental quality.However,due to policy adjustments and changes in the situation,the operation and development of China’s private environmental protection enterprises have been impacted to a certain extent,facing challenges such as intensified market competition,more financing constraints and enterprise transformation difficulties.In this context,China’s environmental protection industry has set off a wave of nationalization.Since 2018,there have been more than 25 cases of private environmental protection listed companies planning to introduce state-owned capital strategic investors in the field of environmental protection.Large state-owned enterprises have significant advantages in financing capacity and project management.The introduction of high-quality state-owned capital can provide strong financial support for private environmental protection enterprises,change the ownership structure of private environmental protection enterprises and have a certain impact on the enterprise governance mechanism.In addition,as the major customer of the environmental protection market is the government,the political attribute of state-owned capital is expected to enhance the competitiveness of enterprises in government projects and expand market share.This thesis intends to select the case of Origin Water to study the theme of private environmental protection listed companies introducing state-owned capital.As a star enterprise in the environmental protection industry,Origin Water,which became the first high priced stock when it was listed that year,finally introduced China Urban and Rural Holding Co.,Ltd.as a strategic investor at a price of less than 9 yuan per share in 2019,and even ceded the actual control in the follow-up.On the one hand,the case fully reflects the difficulties encountered in the development of private environmental protection enterprises in recent years.On the other hand,the effectiveness of its reform can also provide some reference for the survival and development of other private environmental protection enterprises in the future.Based on this case,this thesis first introduces the relevant theories of private environmental protection listed companies introducing state-owned capital,mainly including the concepts of state-owned capital and environmental protection enterprises,the motivation and ways of introducing state-owned capital,and focuses on the strategic alliance theory,principal-agent theory and political relevance theory.Secondly,it introduces the two companies of Origin Water and China Urban and Rural respectively,and combs the process of Origin Water’s introduction of state-owned assets.Then it analyzes the motivation of introducing state-owned assets into Origin Water.Then,it analyzes the results of the introduction of state-owned capital from the aspects of market response,operation status,corporate governance and innovation ability.Finally,this thesis finds that after the introduction of state-owned capital,China’s urban and rural areas can improve their strength in financing,market development,scientific research and R & D;Optimized the water source control structure;By integrating the resources of both sides and exerting synergy,enterprises can deepen cooperation,share resources and management experience.The above research conclusions provide a practical reference for other environmental protection listed companies to introduce state-owned capital in the future,and also enlighten other environmental protection companies to improve corporate governance by introducing state-owned shareholders and use the resources of state-owned enterprises to enhance our own strength and form core competitiveness.What is more,the environmental protection industry should promote national integration to achieve faster development and meet the people’s needs for a good ecological environment.