Empirical Study On The Interaction Between Environmental Performance And Financial Performance Of Petrochemical Enterprise

As environmental issues become increasingly prominent, the status of environmentmanagement in enterprise management has gradually improved. Study of the relationshipbetween financial performance and environmental performance has become an importantreference for implementation of enterprise strategic management and environmentmanagement. Petrochemical industry has always been recognized as a high energyconsumption and high pollution industry. On one hand, as a pillar industry of China’seconomy, it creates economic value for the society, on the other hand it directly produceswaste gas, water, solid to the environmental. But the existing research on the interactionbetween financial performance and environmental performance is relatively less, especiallythe study of China petrochemical enterprises is almost blank. So researching on petrochemicalenterprise financial performance and environmental performance of interaction, for thesustainable development of petrochemical industry and society, has the certain theorysignificance and practice significance.In this paper, on the basis of existing research, suitable financial performance andenvironmental performance indicators is selected, by using relevant data of petrochemicalindustry representative enterprises (CNPC, SINOPEC, CNOOC), through the establishmentof VAR model, Granger causality test and the impulse response to analyze the function. Themutual influence of empirical test of petrochemical enterprise financial performance andenvironmental performance and rules, are obtained in the presence of the interactiverelationship between financial performance and environmental performance of petrochemicalenterprises. This includes financial performance has a promoting effect on the environmentalperformance; in the short-term environmental performance decline has a promoting effect onfinancial performance, but in the long-term it cannot guarantee the financial performanceof sustainable development. Analyzing the corresponding reasons and suggestions provides abasis for environmental management and financial management of petrochemical enterprisesin China.