The Empirical Research Of The Relationship Between Environmental Performance And Financial Performance Of Industrial Enterprise Based On The Degree Of Marketization

The coordination of relationship between environmental and economic is the common problems in the world. In addition, seeking and exploring low carbon and environment friendly growth model is in the top priority in China’s economic and social development. Studies on the relationship between environmental performance and financial performance has been a research hot. Government departments can consider the research of scholars to provide corresponding countermeasures for the environmental and economic problems. The impact mechanism of corporate environmental performance and financial performance can also improve enterprise’s initiative and their ability of the pollution treatment. In addition, research that market factors as regulating variable for industrial enterprises environmental performance and financial performance impact has important theoretical guiding role in regional sustainable development.Research mainly uses industrial enterprises of 30 provinces, cities and autonomous regions as samples, which adopts the method of data envelopment analysis (DEA) for calculating environmental performance score by environmental indicators, and give a brief evaluation and analysis on the regional environmental performance. Then using empirical analysis method to study how degree of marketization influence the relationship of industrial enterprise environmental performance and financial performance. The following conclusion: The relationship of industrial Corporate Environmental Performance and financial performance is not simply linear, but inverted U-shaped. The degree of marketization of industrial enterprises plays a significant role in the relationship between environmental performance and financial performance, the higher the degree of marketization is, the more obvious inverted u-shaped relationship between make the environmental performance and financial performance will be.The conclusion shows that the enterprise should identify the relationship between industrial enterprise’s environmental performance and financial performance firstly, which is not a simple linear relationship. Conclusion suggests that managers of enterprise should solve the environmental problems from a long-term point of view. The government should accelerate the establishment of environmental and economic policy, which can guide enterprise realize win-win situation of environmental performance and financial performance.