Research On The Improvement Effect Of Financial Development On Enterprise’s Environmental Performance

The extensive growth of economy, as well as the rapid development of enery intensive industries in China, has exarerbated the extent of pollution emission on environmental quality. Therefore, it is significant to improve the coordination mechanism between economic growth and environmental protection. Financial development is an important engine of economic growth of China. Scholars at home and abroad have verified the existence of mechanism of financial development to promote technology innovation under the endogenous economic growth theory frame, and technology innovation can drive the regional economic growth. In addition, the technology innovation is conductive to the transformation and upgrading of industrial enterprises in China at present, and also can improve the rate of product efficiency and energy utilization, reduce energy consumption, control pollution emissions, improve the enterprise’s environmental performance. Thus, this study analyses the long-term equilibrium relationship between financial development and enterprise’s environmental performance, as well as the internal conduction mechanism of the impact of financial development on enterprise’s environmental performance from three dimensions of technology innovation, elements’allocation, and human capital accumulation.This thesis noveltily defines the concept of financial development and enterprise’s environmental performance through introducing three dimensions of technology innovation, factors allocation, and human capital accumulation, as well as illustrates the internal transmission mechanism of the influence of financial development on enterprise’s environmental performance. First of all, this article analyzes the influencing factors of enterprise environmental performance on the basis of the stakeholder theory, which finds that the factors of organization members, government behavior, public participation, market participants and so on have certain promoting effect on corporate environmental performance. Secondly, this article interprets the promotion effect of finantional development on enterprise’s environmental performance based on functional perspective, on account of which it analyzes the transmission mechanism of the influence of financial development on enterprise’s environmental performance through technology innovation and human capital accumulation. And then, this paper simultaneously introduces the variables of financial development as well as environmental performance into endogenous economic growth model, and comparatively analyzes the correlation of the rate of steady growth of the variables of financial development, technology innovation, human capital accumulation, and enterprise’s environmental performance under the path of the optimally balancing economic growth. The results show that the rate of steady growth of financial development has significantly magnified the rate of steady growth of technology innovation and the human capital accumulation. Hence, it theoretically confirms that there is a prompting effect of financial development on enterprise’s environmental performance through technology innovation and human capital accumulaiton. Finally, this paper tentatively divides the input factors into naturally attributed input elements as well as technically attributed input elements according to the different function of input factors. On the basis of it, this article constructs the environmental DEA model, and decomposes the influencing factors of corporate dynamic environmental performance assessment index by employing the combined methods of the directional distance function and "Malmquist-Luenberger Index". And it empirically tests the sample datas of related variables above designated size industrial enterprises in China by using the LINGO9.0 software. The result suggests that technology innovation efficiency, fators allocation efficiency, and technology gap inefficiency have significantly positive effects on dynamic variation of corporate environmental performance. And then, the thesis empirically examines the long-term equilibrium relationship between financial development and corporate environmental performance, as well as the causal relationship between financial development and technology innovation, human capital accumulation, input factors allocation by employing ARDL model. The empirical results display that there is significantly positive relationship between financial development and enterprise’s environmental performance in the long run, and financial development can promote the efficiency of technology innovation and elements allocation. However, there is not significant correlationship between financial development and human capital accumulation. Therefore, financial development can improve enterprise’s environmental performance through heightening the efficiency of technology innovation and elements allocation.