Research On The Impact Of Environmental Regulation And Technological Innovation On The Financial Performance Of The Chemical Industry

The rapid development of my country’s economy is inseparable from the strong support of the development of the chemical industry.Since the "Twelfth Five-Year Plan",the chemical industry has continued to develop rapidly,and industrial profits and development scale have increased rapidly.However,the rapid development of the chemical industry also brings harm to the ecological environment that cannot be underestimated.In the daily production process of chemical enterprises,a large amount of environmental pollution will be caused.Part of these environmental pollution is caused by irregular sewage discharge,and part of which is caused by backward chemical equipment.Science and technology have always been the primary productive forces,and the chemical industry is a knowledge-and capital-intensive industry that relies heavily on technology.If the chemical industry wants to develop steadily,more attention must be paid to environmental protection and the improvement of production technology.Therefore,vigorously developing science and technology,focusing on the introduction and research of new production processes,and improving the automation of chemical equipment are an important direction for the development of the chemical industry.This article will study the relationship between environmental regulation,technological innovation and the financial performance of the chemical industry,as well as the impact mechanism between the three.The financial performance index in this article is to use factor analysis to extract the principal components of the eight main financial indicators,and finally calculate the financial performance score.Previous scholars believed that enterprises would pay corresponding environmental protection costs when responding to the requirements of environmental regulations,and the increase in environmental protection costs would have a huge impact on the financial performance of enterprises,but some scholars also opposed it.Based on the above situation,this article will start from the perspective of Porter’s hypothesis and select the financial data and environmental protection data of listed chemical companies from 2015 to 2019 to explore the relationship and mechanism of action between the three.After empirical analysis,the following conclusions are finally drawn: environmental regulations have no significant impact on the financial performance of enterprises in the current period;environmental regulations are conducive to the development of financial performance of enterprises that are lagging behind,and have a positive role in promoting;technological innovation factors can be in environmental regulation And play an intermediary effect in the financial performance of the enterprise.Finally,based on the conclusions drawn,relevant suggestions are made for the chemical industry from the perspective of enterprises and the government.