Research On The Influence Of Corporate Environmental Responsibility On Financial Performance

At present,all sectors of society call on enterprises to fulfill their environmental responsibilities while creating economic value,and put environmental protection work first.However,in reality,most companies simply ignore the responsibility for the environment in pursuit of maximizing their own profits.They believe that fulfilling environmental responsibility will reduce the financial performance of enterprises and regard environmental responsibility as an economic burden of enterprises,leading to current enterprises.The implementation of environmental responsibility is not good,and the company’s environmental damage has occurred frequently.Increasingly harsh environmental conditions pose a serious threat to the ecosystems on which we depend.Based on the current situation of poor environmental responsibility and the increasingly serious environmental problems,this paper studies the impact of corporate environmental responsibility on financial performance.Firstly,through theoretical analysis,combined with the relevant theories of stakeholder theory,sustainable development theory,circular economy theory and corporate reputation theory,the paper analyzes the impact of corporate environmental responsibility on the financial performance of enterprises,and concludes that corporate environmental responsibility will promote the improvement of financial performance.It does not reduce the financial performance of the company,not the economic burden of the company.Then using empirical research and analysis,this paper selects 847 samples from 121 companies in Shanghai-Shenzhen listed enterprises from 2010 to 2016 as a sample of empirical research,using factor analysis method from the company’s profitability,solvency,operational capacity,and development ability.A total of 11 single financial indicators in a large category are selected through a dimension reduction method to extract a comprehensive financial indicator reflecting the overall financial performance level of the enterprise as a proxy variable for financial performance,and adopting the social security awareness and environment of the company under the social social responsibility report evaluation system.The environmental responsibility score calculated by the management system certification,the amount of environmental protection investment,the number of pollutant discharge types,and the number of energy conservation categories are taken as the proxyvariables of corporate environmental responsibility,and descriptive statistics and correlation analysis are made on the impact of corporate environmental responsibility on financial performance.According to the regression analysis,the empirical research results are as follows:(1)The impact of corporate environmental responsibility on the financial performance of the current period is not obvious,that is,the correlation between corporate environmental responsibility and the current financial performance of the enterprise is not strong.(2)There is a significant positive correlation between corporate environmental responsibility and long-term financial performance of the company.Through empirical research,it is further verified that the corporate environmental responsibility derived from theoretical analysis will ultimately promote the improvement of corporate financial performance,but not the conclusion that the financial performance of the enterprise will not be reduced.Finally,based on the conclusions of the research,combined with China’s basic national conditions and the actual situation of the enterprise,it puts forward relevant policy recommendations on improving the financial performance of the company in fulfilling environmental responsibility,hoping to achieve the enthusiasm and initiative to improve the company’s environmental responsibility,to a certain extent.It can solve the problem of poor environmental responsibility of the enterprise,and can improve the financial performance of the enterprise,and finally achieve a good win-win situation for the sustainable development of the enterprise and the construction of ecological civilization.