A Study On The Impact Of Environmental Responsibility On Corporate Financial Performance

The rapid development of science and technology promotes the progress of productivity. But the serious environmental problems are also exposed in the world. So many countries have paid more and more attention to environmental protection. Our government has also formulated many environmental laws, regulations and policies. As the main participants of economic activities in our country, the enterprises are one of the most important ones to undertake environmental responsibility and to protect the environment. The Chinese government has adopted different strategies at different levels to promote the enterprises to undertake environmental responsibility actively, in order to improve the quality of the environment. But only the enterprises attach importance to environmental protection at the strategic level and try to unify their own demand of economic interests and the goal of social sustainable development to make the enterprises undertake environmental responsibility consciously, can the environmental protection policy be effective implemented.In this paper, I take the listed central enterprises and holding companies in China, which release social responsibility report or sustainable development report from 2010 to 2013 as samples, and construct the evaluation index system of environmental responsibility. I use the comprehensive evaluation to represent the environmental responsibility performance of the enterprises, and use the earnings per share to represent financial performance. Then I do the empirical analysis to study the effect of corporate environmental responsibility on the financial performance, and test the uniformity of the economic interests of the enterprises and social the goal of social sustainable development, and put forward some advice to strengthen the corporate environmental responsibility combining with the reality of the economic conditions in our country,The results show that: in the short term, the effect of the environment responsibility of sample firms on its financial performance is not obvious. But the long-term performance of the sample firms shows that: as time goes, the effect of the environment responsibility of sample firms on its financial performance is from negative to positive, which shows that the effect of the environment responsibility of sample firms on its financial performance is chronically positive, especially in the second year. That is to say, the positive effect of the environment responsibility of central enterprises on its financial performance is lagging. Undertaking environmental responsibility actively is positive for the enterprises to improve their financial performance.