An Empirical Study On Environment Cost And Corporate Performance

Enterprises play a very important role in the process of social and economicdevelopment. Environmental information enterprise management department ofenvironmental performance evaluation, an effective way to improve the supervision of theguarantee and the basis of the level of environmental management, but also the nationalenvironmental management department, and the community of corporate environmentalbehavior. With the gradual increase awareness of environmental protection in the nationalgovernment, the report of the18th CPC National Congress to further clarify the proposed newrequirements to build an ecological civilization, and to a good ecological environment of thecountry in2020became one of the important requirements as building a moderatelyprosperous society. Environmental protection has become a corporate hot topic, and alsobecome the focus of attention of various scholars. Although environmental costs related to thetheory of divergent views, but domestic and foreign scholars on the study of theenvironmental costs, and environmental costs of corporate performance impact is constantlyimprove. Therefore, the relationship between the cost and business performance of theresearch enterprise environment is important.Scholars continue in-depth study of the environmental cost theory, and achieved goodresults, but many hot issues are not a consistent point of view, such as the definition ofenvironmental costs, environmental costs of metering, environmental costs, and corporateperformance relationship, there is a needfurther explored.The summary of the characteristics of the definition of the concept of corporateenvironmental costs and environmental costs make further elaborated on the basis ofsumming up the research of scholars. The environmental cost is an economic organization,such as enterprise consuming due to economic or other activities in the process of sustainabledevelopment, the value of natural resources and ecological factors, as well as other costs paidto the implementation of environmental objectives and requirements.Empirical studies of environmental costs and business performance, the choice of theenvironmental costs of disclosure indicators there is a certain degree of difficulty. In the paperindustry, the choice of explanatory variables fixed asset turnover rate of management fees andthe cost of utilization, and add a control variable-enterprise scale to improve theenvironmental cost of convincing. The relationship between the environmental costs and corporate performance. Bymultiple linear regression model, the information that is publicly available in the last six yearsof the29listed papermaking enterprises using SPSS software, EXCEL software regressionanalysis, the conclusion is:(1) the cost of utilization and management expense ratio of thetotal net asset margin (ROA) is inversely proportional expenditures will reduce the level ofperformance of the paper-making enterprises increased costs and administrative expenses;(2)is proportional to the fixed asset turnover and firm size and net profit margin of total assets(ROA), the increase in fixed assets will reduce the level of business performance;(3) increasein the cost of paper industry environment defined herein will result in the reduction of thelevel of business performance, so companies should reduce the environmental costs orenvironmental costs to rectify (that is, to increase environmental protection) to enhance thelevel of performance.Compared to the existing research results,this paper owns its opinions in the followingways:Firstly, in-depth study of the characteristics of the environmental costs. The contradictorynature of the the developed environmental cost characteristics:(1) predictive lag;(2) one-timeand continuity;(3) reality and potential.Secondly, normative research introduced empirical research. Normative research inexpressing empty, no specific examples and digital support, less convincing, if any, supportwould be more specific, true; empirical research can bring the desired results, but requires acertain amount of assumptions and model and reality there is a gap, so you need a specifictheory as a support to explain. All in all, the normative research and empirical researchcomplement each other, mutual integration, it is more convincing.Thirdly, the object of study is specific. Environmental costs an impact on businessperformance, but differences of different industries. In order to prove the relevance of theenvironmental costs of all enterprises with corporate performance, it must be carried out indifferent industries. Although the domestic cost of the existing environment and businessperformance of the research results, but the omission of the object of study, so the need toobject to specific. It is for this reason, choose the paper industry as the research objectvaluable and meaningful.Fourth, nurther exploration of the environmental costs of the selection of indicators onthe paper industry. The environmental costs are not manifested in the statements, the authorEnvironment Yearbook "also did not find the indicator system to be applied, so the integrated use of selected environmental cost index and a combination of accounting performanceindicators and related theories, design paper indicators of environmental costs in the industryto expect these indicators not only for the paper industry, but also to other industries selectedindicators of environmental costs play a secondary effect.Fifth,draw new conclusions. From a special point of view of the environmental costs ofthe paper industry to explore the relationship between environmental costs and performance,and to come to a new conclusion, for reference and learn from.The course of the study, there are two drawbacks: the cost of the enterprise environmentdefined surface is small, the small sample size.