Research Of The Influential Factors Of The Listed Company’s Environmental Protection Investment

With the rapid development of our economy, the environment problem is increasingly prominent. At present, government is still playing the main role in environmental protection investment. Enterprises, as the environmental pollution source, haven’t put in enough environmental protection investment, causing the passive environmental protection investment and the lag of environmental pollution control. Therefore, how to encourage local governments to implement the functions of environmental regulation, and how to encourage listed companies take the lead in environmental protection action under government’s supervision worth in-depth research.External pressure from government regulation is always the initial motivation of enterprises to actively invest in environmental protection, so this article explores the implementation of environmental regulation by the local government on the effects of the environmental protection investment of listed companies. This paper will explore the influencing factors of environmental protection investment scale of listed company, mainly from local environmental policy, local environmental pollution investment amount, local emission charges, local environmental administrative penalty cases, local environmental publicity and education and local official promotion effect. Based on the previous research results for reference, this article choose company’s size, asset-liability ratio, profit, largest owner’s shareholding, managers’shareholding, independent directors proportion and industry attributes as control variables of this paper.257companies was selected as samples in The Shanghai stock exchange’s listed companies in2010-2013. Based on the data gathered about the local government behavior and its annual report, a regression model was build to carry on descriptive statistical analysis and multiple regression analysis using SPSS statistical software. Conclusions and recommendations will be given in the final.According to the conclusion of the study, when local environmental policies are more comprehensive, enterprises under the jurisdiction of local policies will be forced to put more investment in environmental protection. When local emission charge is high, the companies tend to be more active in environmental protection investment. The more frequently local government organizes local environmental protect publicity and education, the influence was greater for the listed company to be active in environmental protection investment. When government officials pursue political promotion urgently, they need more beautiful political performance, so listed company’s environmental protection investment was pushed up to reveal government’s good environmental performance. When the power of enterprise is strong, they are more likely to take attention to environmental protection and attach importance to environmental protection. At the same time, this article will base on the empirical conclusion to put forward suggestions for the government department and enterprises. Local government should gradually improve policies and regulations system construction. At the same time, the government should give full play to its own regulatory functions, stimulate enterprises take responsibility for environmental protection and environmental governance, and encourage social environmental publicity and education. Finally, environment performance examine should be add to the local government officer’s performance evaluation indicators, to encourage officials acting directly on enterprise’s environmental performance.This article research results not only enrich the factors that affect enterprise environmental behavior, but also investigate the external influence from local government’s behavior on the enterprise’s environmental protection investment. According to the local government’s different aspects’ empirical test results, this paper gives some reference about the local government regulatory aspects to enterprise’s environmental protection investment.