Relevance Of Corporate Environmental Performance And Financial Performance

With the rapid development of global economy, the concomitant environmental issues become increasingly prominent. Especially in recent years in our country,"clenbuterol","poison yogurt","zijin mining", groundwater pollution and other environmental events emerge in endlessly. These environmental accidents not only caught the attention of government, consumers and other stakeholders, also caused the enterprise to the attention of the environmental problems in its operation and management. So, in the context of sustainable development, enterprises can be to find a balance between financial performance and environmental performance? Improve environmental performance can improve the financial performance of enterprises? If the improvement of the environmental performance is helpful to improve the financial performance of enterprises, but what should we do to improve environmental performance, in turn, improve the financial performance of enterprises, has become urgent to solve these problems. Correlation relationship between environmental performance and financial performance is not only related to the improvement of the ecological environment, but also related to the sustainable economic development of the enterprise. Therefore, researches of the relationship between environmental performance and financial performance, both from the perspective of the environment and from the perspective of corporate finance, have far-reaching significance.This paper first reviews the research on the relationship between the environmental performance and financial performance in domestic and foreign, defining the concepts of environmental performance and financial performance, combing the theoretical basis of the evaluation of environmental performance that environmental accounting theory, corporate social responsibility theory, stakeholder theory, and then based on the view of sustainable development, information decision usefulness theory and information asymmetry theory,we analyze the mechanism of how environmental performance influences financial performance, for the following discussion and analysis of the relationship between the environmental performance and financial performance.Then, Combing the domestic and international environmental performance evaluation criteria and methods, to provide a basis for the environmental evaluation indicators; on this basis, we selected the Shanghai Stock Exchange listed companies in the manufacturing and extractive industries in2009-2011as the research object, the sewage charges disclosed in the company’s annual report as the environmental performance indicators, studied the relationship between environmental performance and financial performance, which is the biggest innovation points, yet few scholars to examine the relationship between environmental performance and financial performance from the point of view of the sewage charges. This paper found that sewage charges and the financial performance in the short-term changed in the same direction, the development of enterprises based on the cost of environmental pollution. However, according to the long-term observation of the theory and data, we found that, to improve the level of environmental management, to implement a proactive environmental protection, companies will bring long-term benefits, increase the market value and achieve sustainable development.Finally, on the basis of theoretical analysis and empirical results, combined with China’s national conditions, mainly from the macro and micro aspects, two big recommendations to improve the environmental performance was propounded:the one hand, the enforcement policy of the Government and other relevant departments to urge corporate governance environment to improve the environment;On the other hand is a conscious act to strengthen enterprise internal environmental governance, and to promote the common development of corporate environmental performance and financial performance.In this paper, through a literature review of the relationship between environmental performance and financial performance, both theory sort out and analyze, Sewage charges for the environmental performance of the proxy variables, a combination of theoretical and empirical approach of the manufacturing and extractive industries listed company environmental performance and financial performance in2009-2011, In theory extends the research perspective of environmental performance and financial performance, the practice to improve the environment, improve financial performance, achieve environmental and economic benefits and win-win, to achieve the sustained and healthy development of the enterprise.