The Research On The Value Creation Effect Of Listed Companies Participating In PPP Projects

Since 2014,China's Ministry of Finance and the National Development and Reform Commission have been vigorously promoting Public-Private Partnership(PPP).PPP is an important part of the modernization of China's national governance system and governance capacity,a major innovation in the public service supply mechanism,an important measure for the supply-side structural reform,and a major breakthrough in the reform of the fiscal system and the reform of the investment and financing system.The pursuit of a happy life by the citizens requires the government to work closely with private sectors to achieve a long-term win-win model to jointly provide adequate and high-quality public goods and services.Local governments are constrained by the credit rating and the debt red line,leaving little room for local governments to operate public service PPP projects.In this situation,it is urgent to find a new way to encourage private sectors to participate in PPP projects and be willing to take on more risks.The paper uses the method of event study.Using a sample of Chinese listed companies that participate in PPP projects from 2012 to 2016,the paper studies the value creation effect of listed companies participating in PPP projects based on corporate social responsibility theory and reputation theory.Further,the paper studies the impact of investment direction on the value creation of PPP projects from the perspective of industry categories under the guidance of diversification theory,and studies the impact of regional consistency on the value creation of PPP projects from the perspective of geographic location under the guidance of signaling theory.The paper also considers the property rights of enterprises and studies the value creation effect of non-state-owned listed companies and state-owned listed companies participating in PPP projects.The results show that:(1)The participation of listed companies in PPP projects has obvious value creation effects on the whole;(2)PPP projects with different investment directions can create value,but the PPP projects in related industries have more value creation ability than the PPP projects in diversified industries;(3)The wealth effect of PPP projects in different geographical locations is also different,and the PPP projects whose location is inconsistent with the company's registration place have more value creation ability than the PPP projects with geographical consistency;(4)the industry effect and the region effect mainly occur innon-state-owned listed companies.The paper enriches the academic literature of reputational implicit incentives for private sectors to participate in PPP projects based on market value.The research in this paper provides a strong support for using the market value appreciation method to encourage listed companies to participate in PPP projects deeply,and the effect of this method can be promoted to non-listed companies.The article provides effective ideas for all participants to strengthen information disclosure in each link of PPP projects and enhance the transparency of project operations.The paper also provides theoretical guidance and empirical evidence for enterprises to select PPP project industry and region scientifically and rationally,and for the institutional innovation of local government services for PPP projects.