The Relationship Of Corporate Governance And Economic Performance Based On Environmental Management

Since the 80s of last century, China's economic grows rapidly, the achievements are significant, but at the same time,the contradiction of economic development and the environment is becoming increasingly acute. According to the International Energy Agency estimates, now China is the first sulfur dioxide emissions from power. In 2000, China produced by burning fossil fuels carbon dioxide emissions ranking second after the United States in the world. The per capita GDP in 2020 will achieve quadruple in 2000 was put forth in Seventeenth Meeting of People's Congress,in the process, resources, energy consum ption is bound to continue to grow, the pressure of the Environmental Protection will be increasing . To resolve the problem of environmental pollution, the key is the enterprise. As the basic economic unit of society, the responsibility of enterprises is the development of technological innovation and shouldering the important task of social change in the modern history . Enterprise is not only the creators of social wealth, but also a major consumer of natural resources, and the manufacturer of environmental pollution and environmental damage.However, the purpose of business is the pursuit of profit maximization, economic benefit is the greatest driving force for environmental management. Good environmental management is an important component of sustainable development. In recent years, environmental management is a corporate responsibility, also a kind of business opportunity, at the same time, the public would like companies to take measures to protect the environment.In order to address the serious pollution problems, Enterprises play an important role in environmental protection ,the State formulated a series of environmental policy.For example, from 2005 to 2007, the State Environmental Protection Administration conducted three large-scale rectification of environmental management, suspension of the 30 total investment of more than 117.9 billion yuan in construction projects, the use of serious regional environmental pollution the "approved regional restrictions" means the administrative penalties, at the same time,Building a resource-conserving, environment-friendly society is consisted of the Eleventh Five-Year planning.In fact, environmental policy in China is still not out of"an administrative order"government control of the situation, there is no established an strategy of sustainable development and integrated system of environmental policy decision-making mechanism under market economy ,in the formulation of environmental policy, there is still "inadequate mechanisms, policies lack of support", etc. (Han, 2006).Whether governance mechanisms can be used to improve environmental performance and also enable enterprises to enhance economic performance. In the past, about corporate governance, economic performance and environmental performance, the focus of the studies was focused on he relationships of two variables from corporate the three variables.There is few study about a comprehensive consideration of corporate governance, economic performance and environmental performance. SO this paper uses empirical research method, selects heavily polluting enterprises from the listed companies in Shanghai and Shenzhen as the samples, make a comprehensive research about corporate governance, environmental performance and economic performance.That is, from the internal governance view, external regulatory control measures, whether there is Good corporate governance mechanisms that can makeenterprise managers pursuit excellence economic performance,at the same time, assume the responsibility of the Environmental Protection, and environmental performance is enhanced, achieve environmental protection and corporate profits "win-win" goal.Therefore, this study has some practical significance.This research intends to address the following four questions:(1) Test the impact on corporate governance and environmental performance;(2) Test the impact on environmental performance and economic performance;(3)Test the impact on corporate governance and economic performance;(4)Test environmental performance play an intermediary between corporate governance and economic performance.The concrete structure of the paper is as follow:The first chapter is the introduction. It tells mainly the background and significance of the paper and shows the basic framework and innovation.The second chapter is the theoretical beginning and basis of the paper. It tells Previous research results about the relationship among the Corporate governance, environmental performance from Board of Directors'character and ownership structure.The third, forth, fifth chapter are the main part of the paper. The third chapter proposes assumptions of this paper after the literature summary. The forth chapter tells Sample selection and data sources. It also tells the factors of Corporate governance, environmental performance, economic performance. Research model is selected the regression analysis.The fifth chapter is empirical analysis. It uses descriptive statistics ,regression analysis ,and according to Baron and Kenny (1986) recommended steps to test Intermediate results, and then gets the relationship of corporate governance, environmental performance and economic performance.The sixth chapter is the conclusions and suggestions.This paper summarizes the main conclusions through the above analysis and points out the shortcomings and the suggestions for the future study.The research found that: (1) The relationship of corporate governance and environmental performance is negative, mainly through the shareholding ratio of the management ownership and institutional investors.(2) The relationship of environmental performance and economic performance is negative,it's support the traditional view. Because,maybe in pursuit of environmental protection ,enterprises adopt environmental protection measures to reduce pollution, the cost will also raise and revenue generated is not sufficient to offset the costs, profits will drop,so the environmental performance impact significant negatively on economic performance ( earnings per share).(3)The relationship of between Corporate governance and economic performance is positive, that is, good corporate governance mechanisms will help to enhance the economic performance.(4)Corporate governance mechanism has not an impact on economic performance through the intermediary effect of environmental performance.