Research On The Relationship Between Environmental Cost And Financial Performance Of Listed Companies

As the most important part of social and economic life,enterprises must not only shoulder the important tasks of improving the level of national economic development,but also bear the important responsibility of protecting the environment,preventing pollution and green development.However,today,with the continuous improvement of the economic level,China The environmental situation is deteriorating.The reason is that the development of the enterprise is one-sided and isolated.The enterprise separates the relationship between environmental protection and performance growth.It only sees the negative effects of environmental costs.Discover the benefits of environmental costs for the future development of the company.Therefore,the main content of this paper is to let enterprises,especially heavy polluting enterprises,understand the "unique"aspects of environmental costs,and face up to the various expenses incurred in compensation,maintenance and improvement of the ecological environment,so that they can actively fulfill the environment.Responsibility,to achieve double promotion of financial performance and environmental protection.At the same time,because the existing literature has not reached a consensus on the research conclusions of the relationship between the two,and the viewpoints are complicated,the research in this paper can also provide theoretical contributions to the relationship between the two.In addition,among the many factors affecting the relationship between environmental costs and financial performance,the internal governance structure of the company plays a very important role.The decision of an environmental cost(the specific commitment of environmental responsibility)cannot be separated from all aspects of the internal governance structure.There is little comprehensive research on this in the existing literature.Therefore,it is of great theoretical significance to study the influence of the internal governance structure of the company in the relationship between the two.This paper takes the data publicly disclosed by the heavily polluting listed companies in 2012-2017 as the representative to explore the relationship between environmental costs and financial performance.Firstly,based on previous researches,this paper reclassifies environmental costs according to the use and function of current environmental costs to ensure the reliability of the research conclusions.Secondly,this paper puts forward relevant assumptions after conducting sufficient theoretical analysis.,build a relationship model between the two and conduct an empirical test.The study found that the occurrence of environmental costs has laid a solid foundation for the prevention,reduction and environmental protection of pollution in the later period,which is conducive to tax reduction and fee reduction,and enhance the future financial performance of enterprises,that is,the environmental costs and financial performance of enterprises It has a positive correlation but has a time lag.Based on the conclusions of the previous research,this paper adds the internal governance structure of the company as a regulatory variable to the model,and further discusses the specific influence of the internal governance structure of the company in the relationship between the two.After empirical testing,we found that the concentration of equity,the size of the board of directors and the board of supervisors played a positive role in the relationship between environmental costs and financial performance,but there was a time lag,that is,heavily polluting listed companies with high concentration of equity,the more It is conducive to consciously fulfilling environmental responsibilities and vigorously investing in green,thus promoting the improvement of future financial performance.The larger board of directors and the board of supervisors will have the same effect to a certain extent,but the proportion of independent directors and executives hold shares.The ratio does not have any effect in the relationship between the two.According to the research conclusions drawn from the above research,this paper puts forward opinions and countermeasures from the aspects of strengthening corporate environmental awareness,optimizing corporate governance structure,and deepening government supervision.It is hoped that through the research in this paper,the vast number of heavily polluting listed companies and enterprises will recognize the key role of environmental costs in the development of enterprises,grasp the relationship between the two as a whole,optimize the corporate governance structure,and actively establish "green,development,Harmony and symbiosis,the environmental protection concept,do a good job in environmental protection and pollution prevention,achieve coordinated development of financial benefits and environmental quality,promote the transformation of new and old kinetic energy,benefit the people’s health,and strive for the development of the country,complete the beautiful China Construction goals with economic powers.