The Research Of Enterprise Capital Structure Decision Based On Environmental Liability Distribution

Energy saving and emission reduction strategy for economic development not only restrict operation and financial behavior design of an enterprise, but also provide new opportunities to enterprise value creation and sustainable performance improvement. To ease the contradiction between economic development and environmental protection, government departments constantly establish and improve monetary policies for environmental protection which would be conducive to environmental protection. With influence of the monetary policies for environmental protection, enterprises, banks and government have different distribution system of environmental responsibility. By analyzing capital structure decision differences under different environmental liability regime, this paper proposed that the monetary policies for environmental protection of China should focus on whether our policy could encourage corporate behavior effectively, make the decisions of enterprises benefit environmental protection.Although our academic circles have studied determinant of enterprise capital structure for decades, but the system in response to environmental responsibility impact on the capital structure decision is rare, some main point is research results of foreign scholars. In this paper, we absorbed the existing foreign research on relationship between environmental responsibility and capital structure, combining environmental economic policies and specificity of our financing system, simply analyze the relationship between capital structure and environmental economic policies, we discussed enterprise capital structure choice behavior under the following three kinds of environmental responsibility, that strict liability, lender liability, financial responsibility, combined with the actual situation that our local governments often consider local interests and conspire with polluting enterprises, so our paper evolved an conspiracy model. Analysis show that financial responsibility can achieve the optimal capital structure,lender liability and strict liability both make capital structure deviate from the optimal; conspiracy model pointed out that the conspiracy between firm and environmental regulation agencies will eventually induce capital structure far away from the optimal level. In the ensuing analysis, this paper use financial data of sixty-one listed companies from 1998 to 2008(panel data), with a dummy variable to indicate environmental responsibility system, conducted empirical analysis on the relationship between environmental responsibility and capital structure of the sixty-one companies. The empirical results show that:both strict liability and lender liability did not reach the optimal capital structure.By discussing the change direction of enterprise capital structure under the environmental economic policy system, this research could provide theoretical background to government who aim at the most effective regulation to the polluting enterprises, in addition, for improving monetary policies for environmental protection, our paper could supply some reference.