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

As the development of Chinese economy meets an important period of strategic opportunity the“new normal”,the whole society pay more attention to the contradiction between the rapid development of corporation and the environmental problems. So the top priority of the environmental governance is that the responsibility of the chemical industries in the environmental protection. Although the tax and financial subsidies from Chinese government have been invested more, it is just a drop in the bucket for the water pollution,air pollution and the deterioration caused by the chemical industries. As a result,the public have an intense desire that the chemical enterprises should take environmental responsibility more actively. But all the enterprises have always taken the maximization of profit as their final goal, and they believe that taking measures to protect environment will inevitably increase the economic burden of the enterprises. Therefore, the scholars pay more attention to the impact on the financial performance caused by the actions in the environmental protection of chemical industries. Making a general survey of the domestic and foreign researches, there is no consistent conclusion on the relationship between them. In view of this, the paper will take an empirical test of the relationship between financial performance and environmental responsibility taken by Chinese listed companies of chemical industry so as to improve the situation of taking environmental responsibility of enterprises and promote the sustainable growth of the benefit.This article combines the method of normative research and empirical research in order to explore the correlation of corporate environmental responsibility and financial performance. The main research contents are as follows: Firstly, we discuss the background and purpose of this paper and illustrates the theory meaning and realistic meaning of assuming environmental responsibility by listed chemical companies in our country. Secondly, based on the related literature at home and abroad, the paper will define environmental responsibility and financial performance. After analyzing the theoretical basis, such as stakeholder theory, sustainable development theory and principal-agent theory,the article tries to explore the reasons why the enterprises should take environmental responsibility. Then, the article explores intensively the mechanism of them so as to provide logical support for the empirical research below. Finally, according to the above theories, this article selects environmental expenditure ratio(EPR),the certification of the environmental management system, environmental income ratio(EIR) and environmental award(EA) as the representative indexes of environmental responsibility to build model on the relationship between the corporate environmental responsibility and financial performance, and use statistical analysis method to test their correlation.The empirical results show that: the relationship between the ratio of environmental expenditure and corporate financial performance is significantly negative, while the environmental management system certification, environmental income ratio and environmental rewards have no significant correlation with corporate financial performance. According to the research conclusion, the government should increase financial support, take strict enforcement, and adopt effective incentives to improve the enthusiasm of enterprises to take environmental responsibility. At the same time, chemical enterprises should also strictly regulate their own act of production, and improve the environmental management system and establish the construction of information disclosure mechanism.