Corporate Environmental Responsibility,Internal Control And Financial Performance

The goal of China’s economic development has changed from high-speed growth to high-quality development,and green sustainability is an important indicator of high-quality economic development.The report pointed out that promoting green and low-carbon economic development is a key link to achieve high-quality development,and stressed that the prevention and control of environmental pollution should be further promoted.This requires enterprises as the main body of economic operation,production and management should not only pursue economic benefits,but also actively undertake environmental responsibilities.For resource-based enterprises,while pursuing financial performance,they should also fulfill environmental responsibilities,strengthen internal supervision,increase investment in environmental protection and technology research and development,and improve production conversion efficiency.So,what impact will corporate environmental responsibility have on financial performance? At present,there have been many researches on the pairings between environmental responsibility,internal control and financial performance,but the analysis of internal control as a moderating variable is lacking.Based on this,the impact mechanism of corporate environmental responsibility and internal control on financial performance is deeply and comprehensively analyzed to improve the internal motivation of enterprises to improve internal control and fulfill environmental responsibility.Based on existing research results and stakeholder theory,sustainable development theory and social responsibility theory,this paper raises questions based on sustainable development strategy and the status quo of corporate environmental responsibility implementation,summarizes relevant literature and theoretical basis and proposes research hypotheses.Then,relevant data of resource-based listed companies from 2012 to 2020 are selected.Select appropriate indicators to build a model,explore the relationship between corporate environmental responsibility and financial performance as well as the moderating effect of the relationship between internal control and corporate environmental responsibility through correlation analysis,regression analysis,moderating effect analysis and robustness test,and divide the samples into state-owned enterprises and non-state-owned enterprises to analyze the moderating effects.Through the empirical study,the following conclusions are drawn:(1)the improvement of environmental responsibility of resource-based enterprises has a significant promotion effect on the realization of financial performance objectives,and the environmental responsibility that lags one stage still has a positive impact on financial performance;(2)Internal control can positively regulate the relationship between environmental responsibility and financial performance,that is,the higher the level of internal control,the more obvious the degree of improvement of financial performance.(3)Compared with non-state-owned enterprises,environmental responsibility in resource-based state-owned enterprises has a significant positive promoting effect on financial performance,but not significant in non-state-owned enterprises.Based on the above analysis conclusions,relevant suggestions are put forward from the two aspects of enterprises and the government,providing theoretical basis for China’s resource-based enterprises to actively fulfill environmental responsibilities,improve internal control level and improve financial performance measurement,and providing reference for the government to formulate relevant policies.