The Research On The Relationship Between Financial Performance And Eco-control

The good ecological relationship between enterprises and nature is the goal of ecological civilization construction. Eco-control as an effective environmental management tool that can motivate companies for green production and green innovation, then gain strategic benefits, which is crucial to the promotion of green production.Firstly, on the basis of existing literature, this article summarizes the theoretical basis regarding the impact of enterprise eco-control on financial performance; including the nature resources based view, eco-efficiency value creation theory and internal control theory. Referring to foreign environmental management and eco-efficiency indicators combined with China’s actual situation, ecological control evaluation index system of enterprises has been built by using content analysis method to measure the level of eco-control and calculate control level ecological index (EDI). Secondly, based on the data of 670 samples from 134 listed companies between 2009 and 2013 as observations, SPSS 19.0 regression analysis is applied to research the relationship between corporate financial performance and ecological control. The result confirmed the negative correlation between ecological control and operating costs of enterprises, the positive correlation between ecological control and ROE. This study concludes that, with the development and implementation of ecological civilization system construction, ecological control system embedded in business operation has gradually attracted more and more attention. Energy efficiency and emission reduction has a synergistic effect on financial performance.According to the study of foregoing analysis, three proposals are put forward:building a perfect eco-control management system; extending the internal control standard of enterprise ecologic relationship; formulating the detailed ecologic management standard and auditing requirement. In details, to build a comprehensive eco-control management system, enterprises are required to establish an eco-control management system, which embedded eco-control into business operation. A modern enterprise is an agent that transforms nature resources into useful products. A well relationship between nature and modern enterprises is a source of motivation for sustainable development of enterprise.