The Correlation Research Of Corporate Environmental Responsibility And Financial Performance In The Paper-making Enterprises:Evidence From Chinese Listed Paper-making Firms

According to the report on government work in 2016,the construction of "a beautiful China with blue sky,green land and clear water" was particularly pointed out.As one of the main source industries of environmental pollution in our country,it is inevitable that the contradiction between the developments of paper industry with the state requirement of environmental governance have become the key point of environmental governance.As early as in 2105,the State Council raised the Water Pollution Control Action Planning stating that according to the laws and regulations of water pollution prevention and control,by the end of 2016,all the production projects causing severe contamination to the water environment including the small paper-making enterprises in dis-conformity with the national industrial policy shall be banned.Apparently,the days where enterprises did not necessarily undertake the environmental responsibility as long as they contributed to the tax increment of local finance are gone.Nonetheless,the profit maximization is invariably the ultimate pursuit of enterprises in the process of enterprise development,yet assuming environmental liability is bound to increase the input cost of enterprise and impact on the financial performance of the enterprise.Setting out from the paper industry enterprises,the paper elaborates on the relationship between the fulfillment of environmental responsibility and corporate financial performance,in an attempt to improve the enterprises' attitude toward to the execution ofenvironmental responsibility and promote the enterprise development in compliance with the requirements of national environmental policy and laws.The paper unfolds itself with the national policy perspective,and explicates the research background and practical significance of the paper.Subsequently,the paper expounds on the definitions of corporate environmental responsibility and financial performance based on the literature unscrambling and reviewing of studies on the relationship between CER and CFP,as well as the evaluation indicators of environmental responsibility.As a next step,the paper elaborates on the research objective with the aid of stakeholder theory,the theory of social responsibility,the interaction mechanism of environmental responsibility and financial performance and the theory of sustainable development.Last but not least,reasonable assumption is raised based on theoretical analysis.Additionally,picking twenty listed paper industry enterprises from 2010 to 2014 as research samples,taking the calculation of environmental liability score of social responsibility report evaluation system on Hexun website as the proxy variable of corporate environmental responsibility,with the total assets return rate as the proxy variable of short-term financial performance,enterprise economic value added as the proxy variable of long-term financial performance,the paper contains a regression analysis on the correlation of corporate environmental responsibility of paper industry enterprise and short-term and long-term financial performance of enterprise,ultimately concluding the correlation between the environmental responsibility and financial performance.The research conclusion drawn from the analysis.Based on the corporate environmental responsibility,scientific and proper suggestions have been put forward so as to improve the performance of enterprise management both from the perspective of outer management and internal governance.By this way,enterprises can not only enable the profit but also protect the environment.Win-win cooperation will be realized for both the improvement of competitiveness and sustainable development in paper-making industry.