The Study Of Political Connection, Financial Subsidy And Environmental Performance Of Enterprises

Over the past thirty years, the Chinese government has one sidedly pursued the rapid development of economy, as the cost of exploitation and utilization of mineral resources in order to achieve rapid economic development, ignoring the protection of the environment. Although in the thirty years of economic development, China’s economy has maintained a rapid growth rate, it has currently developed into one of the world’s major economies, but in retrospect, we will find that the environmental problems has become the constraints of stumbling block to the further development of China’s economy. At present, China’s economic development model needs transformation, the development model of the high loss of resources, low utilization and high pollution has not adapted to the needs of China’s current development. As an important pillar of China’s economic development, the enterprise is not only the promoters of economic development of our country, but also is the major producers of environmental pollution, and its pollution problem is relatively prominent, if we do not restrict the behavior of enterprises, and do not solve the problem of emission of these enterprises, we would not solve the problem of environmental protection and the structural transformation of the economy of our country would be out of the question.So the problem of environmental protection has become a hot research topic. However,in the planned economy period, the government has the right to make the economic activities of enterprises, and there is a close relationship between the government and the enterprises. Although China has made a transition to the market economy, the market still can not fully play the role of the allocation of resources. Although the enterprises have some independent rights, the government can still affect the business activities of the enterprises. Some enterprises and the government are closely linked. Inthis case, enterprises can develop and grow through this political association. Relative to these enterprises, the enterprises which have no political association need to rely on their own development. The enterprises which have the political association of not only can get the support of the government, but also can get financial subsidies and other scarce resources and environmental protection policies and other related information through such a relationship and then get the advantage of enterprise development. At present, some scholars have studied the relationship between political connection, corporate environmental responsibility and environmental disclosure, but the research on the relationship between political relationship and corporate environmental performance is relatively small. This paper analyzes the relationship between political association, financial subsidy and environmental performance by adding the factor of financial subsidy.First of all, this paper makes a theoretical basis for the study of political connection, financial subsidies, and environmental performance of enterprises, that is summarizing the research results of the related scholars, it puts forward the related hypothesis based on the principal-agent theory, rent-seeking theory, resource dependence theory and stakeholder theory. In this paper, we choose the data of listing Corporation of heavy pollution industry from 2010 to 2014 as the sample, using panel data to study the relationship between the political relationship, financial subsidies and corporate environmental performance. In this paper, we mainly study the following problems: the relationship between political connections and financial subsidies; the relationship between political connections and corporate environmental performance;after grouping of political relations, financial subsidies on enterprise environmental performance.Through empirical analysis, we find that the political connection has a positive impact on the acquisition of financial subsidies for enterprises; the political connection and corporate environmental performance are negatively correlated; in the case of the existence of corporate political association, financial subsidies have a negative effect on corporate environmental performance; the political connection can bring more financial subsidies for the enterprise. in the enterprises which have the political connection, financial subsidies and the business is current environmental performancedoes not exist significant relationship, but there is a significant negative correlation between the financial subsidy and the environmental performance in a lag period. In the absence of political association of enterprises, financial subsidies can improve the environmental performance of enterprises, and the effect is more obvious in a lag period.