Impact Of Corporate Proactive Environmental Strategy On Economic Performance

As the world environment going worse, corporates are facingincreasingly pressure for their clean production and environmentalinfluence. Since1980s, scholars have shown great interest in research oncorporate proactive environmental strategy (PES). Many researchesprovided evidences that PES can increase corporate value and performancethrough the activities including environmental products innovation,environmental certification, technology improvement, etc. However, otherresearchers argued that it costs corporates too much for PES which mayexceed the profit gained from PES.This paper conducts empirical research on the impact of PES oncorporate economic performance among748Chinese manufacturingpublic companies, from a perspective of environmental informationdisclosure. The findings help explain the debate of prior researches.Corporate market value shows a great increase after PES, while theresponse of financial performance delays. As PES is a continuous activity of corporate, costs are not necessary to be concerned in long term. Ingeneral, PES will increase corporates market value, as well as financialperformance. However, the mechanism of this phenomenon needs deeperstudy in the further.The main academic attainments of this research are,(1) The empirical study of Chinese manufacturing corporatesimproves the understanding of PES in developing countries.(2) From the perspective of Environmental Information Disclosure,analyze a large sample by time series and find the dynamic andlagging effect of PES on corporate financial performance.