Study On The Correlation Of The Financial Performance And The Corporation Environmental Responsibility

In recent years, with the rapid development of the economy. The environmental problems become more and more prominent. The public have recently been reminded by continuous fog haze weather in mid-eastern china, groundwater pollution event in Shandong, rice cadmium exceed the standard event in Hunan and other environmental accidents, The environmental problems of our country is very serious. These corporations that are very important in the economic development cause these environmental problems. In order to solve the environmental problems which damage people’s lives and properties, we should find the answer from the source. We should encourage corporations carry out environmental responsibility actively when they pursuit economic development. As corporations take the environmental responsibility at a great cost in money, they are reluctant to take environmental responsibility. Although the implementation of environmental responsibility is an inevitable choice of sustainable and healthy development of the whole society, but whether enterprises should take the environmental responsibility and how can enterprises benefit from it is still a problem. Theoretical research and empirical test has not yet reached a consensus at home and abroad.This paper combines the method of the normative research and empirical research. Firstly, we explain corporation environmental responsibility and classify the study of different scholars. Secondly, we analyze the theoretical foundation of corporation environmental responsibility to find the corporation environmental responsibility theoretical basis. Finally, structure the corporation environmental responsibility index to evaluate the corporation environmental responsibility on quantitative basis and establish the model to find the relationship between corporation environmental responsibility and financial performance. This paper collects empirical data of50listing Corporations in Wuhan city circle and Changzhutan city group in2009--2011for empirical testing, we expect to find out the correlation between the corporation environmental responsibility and the financial performance, and provide theoretical and practical reference for enterprises to perform environmental responsibility and government to formulate relevant policies.The empirical results show that:the state-owned listing Corporation is better than non-state-owned listing Corporation In the performance of corporation environmental responsibility, heavy pollution industry listing Corporation is better than non-heavy pollution industry listing Corporation In the performance of corporation environmental responsibility, This shows that the enterprise environmental responsibility in China is affected greatly by the government and policy, these enterprises is still at the lower stage of environmental responsibility. We found a significant inverse correlation between corporation environmental responsibility and financial performance, the reason is our country’s environmental pollution control cost is high and lacking of government subsidies for enterprises perform environmental responsibility.