Research On The Diversified Operation Performance Of Environmental Protection Enterprises In China

In recent years,China's environmental protection industry has accelerated its development under the favorable macro policies,the environmental protection field has been continuously widened,the environmental protection structure has been continuously optimized,and the overall benefit has been greatly improved,with broad development space and huge market increment.Listed companies in China's environmental protection industry gradually carry out diversified operation under the favorable industrial policies,and mainly expand their business in the relevant diversified mode.On the one hand,they implement vertical integration and extension of the environmental protection industry chain,on the other hand,they carry out horizontal joint to achieve large-scale development and refined management.With the expansion and extension of environmental protection industry chain,frequent mergers and acquisitions,and the development trend of business diversification becoming more and more significant,diversified investment and financing qualification Bureau has gradually formed.Under the situation of national prevention and resolution of major risks and strong deleveraging,the financing difficulties and high costs in the process of diversified development of environmental protection enterprises are highlighted.At the same time,affected by the characteristics of long investment period,slow efficiency,high technology and environmental requirements of environmental protection projects,environmental protection enterprises are facing various pressures and risks.In the complex environment of both opportunities and challenges,the purpose and focus of this paper is to explore the impact of diversification on the performance of environmental protection enterprises,the causes and characteristics behind it,and relevant promotion strategies.Based on the perspective of diversified operation,industrial chain layout and enterprise performance,this paper selects 51 sample companies and 4 characteristic enterprises to describe the current situation and analyze the specific cases,and finally uses empirical test.The results show that,With the diversified development process and continuous extension of industrial chain of environmental protection enterprises in China,the overall business performance has not been significantly improved,and the degree of diversification has a linear negative correlation with business performance.And the specific performance will be different due to different types ofdiversification or business models: Vertical merger and reorganization centered on industrial chain integration is a diversified expansion mode that can produce positive effects.Excessive blind expansion,neglect of main business competition,or lack of effective planning and waste of high-quality resources will increase the difficulty of management and control and capital pressure,which will have a negative impact on the performance of the company.According to the conclusion of the study,the paper concludes the strategies to improve the diversified operation performance of environmental protection enterprises in China,and puts forward suggestions for their reasonable strategic planning,control and grasp the expansion speed,actively control the financial and operational risks,so as to provide theoretical support for the improvement of relevant policies and systems,promote the development and expansion of environmental protection industry in China,and obtain environmental improvement and resource saving The good benefits of ecological protection can alleviate the contradiction between the demands of sustainable development and the interests of market subjects,and finally promote the green transformation of economic development.