The Correlation Research Of Listed Companies Governance Structure And Environmental Cost In China

In recent years, the deterioration of the environment causes the great attention of the people all over the world to the issue of environmental protection. The State Council has already write heavy metal pollution into "Twelfth Five-Year Plan". For enterprise, it is general trend that improving the level of enterprise management of environmental cost. The governance structure is the most important influence factors that deciding the enterprise behavior and the base of achieving a reasonable expenditure of the environmental cost. The correlation research of company governance structure and environmental cost is not only benefit for enhancing understanding of enterprise governance, improving governance structure, promoting the long-term and stable development of enterprise, but also has advantage of strengthenning enterprise social responsibility and enhancing the degree of concern to environment. At present, there is seldom research of company governance structure and environmental cost from the perspective of the number in the theoretical circles. Although, logically, the two sides are closely linked, we still lack actual evidence to prove it.This paper combines normative and empirical research methods and selects seventy listed companies as samples in order to demonstrate the correlation of listed companies governance structure and the environmental cost in China. The purpose is to provide some reliable evidence for recognizing the influencing factors of the environmental cost, and provide some practical basis for improving our corporate governance status and environmental cost management. This paper firstly elaborates the theoretical basis of enterprise governance structure and environmental cost to support theme. Secondly it analyses the infuence to the environmental cost from the characteristics of board of directors, ownership structure, and leadership structure briefly, puts forward the hypothesis, and does the empirical test. Finally the paper makes suggestion of improving governance structure and enhancing environment protection consciousness according to the conclusion.Through the research, we get that the company governance structure and the environmental cost are singificantly correlated, the proportion of independent directors and the environmental cost are significantly negatively correlated, the ownership concentration and the environmental cost are significantly positively correlated. The impact of other company governance structure factors, such as directors share holding proportion, two part-time position,the size of the board, the establishment of the audit committee, on the environmental cost arenot significant.