The Research On The Impact Of Environmental Performance On Enterprise Value Based On Zijin Minig Gruop Company Limited

As the environmental regulation is increasingly strict, the environmental performance of the enterprise has become a hot topic among the public. Enterprises’significance is to acquire the maximization of enterprise value. Whether good corporate environmental performance can promote the development and adverse environmental performance will reduce the enterprise value is a hot topic. Deep in this background, this paper concentrates on the relationship between corporate environmental performance and the firm value.This paper first reviews and summarizes the related literature about the relationship between corporate environmental performance and firm value at home and abroad. Then based on these literature researches, the author builds the theoretical basis of the impact of environmental performance on enterprise value. In order to accomplish the theory analysis, the theoretical basis contains three main parts, that is the organizational legitimacy theory, a natural-resource-based view of the firm and organizational capabilities. From the legal perspective, organizational legitimacy theory tells the motivation of adopting environmental strategy. For the sake of carrying out the production and operation activities in the market, the firms have to make themselves being legitimate. From the point of resource utilization, the natural-resource-based view of the firm finds that the corporate would gain sustainable competitive advantage after employing the environment strategy. Organizational capabilities include capabilities for stakeholder integration, higher-order learning and continuous innovation. After these, we use Zijin Mining Group Co. Ltd as our sample and select its environmental performance indices and financial performance indices between 2006 to 2013. The index of environmental performance is the result of datamation of quantitative and qualitative environmental performance information, the indices of enterprise value are TQ, the operating margin, the free cash flow and the dividend payment rate. Then we use the data line to contrast the environmental performance and these financial indicators. Our conclusion is that excellent environmental performance is beneficial to increase the enterprise value, the environmental pollution events would cause poor performance of the major financial indexes of the enterprise, finally, it will lead to the decline of the enterprise value. At the end of the paper, according to the above researches, the writer makes some policy recommendations for the stylebook enterprise.