The Influence Of Environmental Regulation On The Performance Of Enterprises

With the rapid development of China’s economy,environmental pollution problems come one after another,which have caused different degrees of harm to people’s life health and social sustainable development.Environmental protection has become one of the hot topics in the society,and the relevant departments of the state have paid more and more attention to environmental governance.As the main ways to deal with the contradiction between economic development and environment,technological innovation is directly related to the future development of enterprises and the construction of social ecological civilization.This paper attempts to explore the impact mechanism of different environmental regulation tools on corporate performance,and further analyze how to deal with environmental regulation.The results of previous literature indicate that environmental regulation affects the performance of enterprises through the following two aspects.First,environmental regulation will increase the environmental protection expenditure of enterprises,thus increasing the cost burden of enterprises and reducing the performance of enterprises.Second,environmental regulation will change the external environment of enterprises,affect the internal behavior of them,stimulate the technological innovation of enterprises,and indirectly affect the performance level of enterprises.In view of this,this paper sets technological innovation as an intermediary variable,and uses the intermediary effect model to estimate the impact degree and mechanism of different environmental regulation tools on enterprise performance.In the process of data collection,this paper collected 93 listed companies in heavy pollution industry from 2008 to 2017,the panel data of 10 years in total,and through CSMAR,Wind database,baiteng.com and cninfo.com,the relevant data of technological innovation and performance of enterprises are obtained.After collecting the relevant data,this paper first uses factor analysis to estimate the comprehensive score of each enterprise’s performance.Then the fixed effect model is used to estimate the impact of command control,market incentive and public participation environmental regulation tools on the level of enterprise performance and technological innovation,as well as the impact of three regulatory tools and technological innovation on enterprise performance.The conclusions of this paper are divided into the following four points.Firstly,the order controlled environmental regulation has a significant negative impact on enterprise performance and technological innovation.Secondly,market incentive and public participation environmental regulations have a significant positive impact on enterprise performance and technological innovation,which verifies the validity of "Porter" hypothesis,and public participation environmental regulations have a long-term positive impact on enterprise performance.However,there are differences among enterprises in different regions.Market-oriented and public-oriented environmental regulations in the western region have no significant impact on the performance of enterprises.Thirdly,there is a significant positive correlation between technological innovation and performance.Fourthly,technological innovation has a significant partial intermediary effect on the relationship between environmental regulation and enterprise performance.According to the research conclusion,this paper puts forward the corresponding policy suggestions from the government and enterprise levels.First,the relevant government departments should innovate the way of environmental regulation,adopt efficient environmental regulation tools,improve the intensity of environmental regulation,and improve the market competition mechanism.Second,enterprises should change their views on environmental regulation,improve their innovation ability and transform to green development.Third,the masses should give full play to the public power and strengthen the supervision effect of "soft restriction".Based on the perspective of micro enterprises,this paper compares and analyzes the direct and indirect impact of heterogeneous environmental regulation tools on enterprise performance,which provides a certain reliable basis for macroeconomic policies to promote enterprise development.