Researches On Domestic And Overseas Science And Technology Investments In Environmental Protection Industry From The Perspective Of Financial Performance And Institutional Support

The 21 st century is a scientific and technological development-oriented era. Especially, China proposed the strategy of “developing environmental conservation through science and technology” during the “Eleventh Five-Year”, holding the view that environmental conservation is the focus of economic growth, structural adjustment and people’s livelihood improvement. China started environmental protection cause later than the developed countries, so there is a great difference between it and the developed countries in policies and regulations for environmental protection, development scale of environmental protection industry, enterprise scale of environmental protection industry and policy orientation for environmental protection industry. Science and technology drives industrial development. Environmental protection and technology input has become a focus of attention to China in recent years. This paper selects several representative Chinese listed environmental protection enterprises and learns experience from the developed countries, to make an analysis on enterprises’ profitability and development ability, as well as a linear analysis by regression analysis method, and meanwhile adds control variables, to study R&D input. Through comparative studies on domestic and overseas science and technology investments in environmental protection from the perspective of financial performance as well as domestic and overseas environmental protection policies, this paper analyzes the shortcomings existing in the development of China’s environmental protection industry, and establishes an appraisal system for enterprises’ environmental protection input, to provide indicative bases for China’s future science and technology investments in environmental protection industry.This paper mainly consists of seven parts. Firstly, the paper presents an introduction to the research background, significance and method, and carries out a study on the literatures at home and abroad to learn about the domestic and overseas research status of the relevant topic; secondly, it elaborates on the basic theories required for the research; thirdly, it analyzes the development history of the environmental protection industry in America, Japan, Germany and China from the perspective of environmental protection industry scale, industry structure, national policy orientation and driving factors for environmental protection industry development, with an analysis on the domestic and overseas research status of environmental protection industry in terms of science & technology investment and financial performance, to explore how foreign countries provide institutional support for the increase of science & technology investment in environmental protection industry and improve its financial performance; fourthly, it builds an empirical analysis model by analyzing the domestic and overseas research status of environmental protection industry based on science & technology investment and financial performance, reveals the difference between China and the developed countries by conducting an empirical test on some environmental protection enterprises at home and abroad, and explores the causes for the difference; fifthly, it explores the causes according to the empirical analysis result, and puts forward perfect concrete suggestions for China’s financial, revenue and institutional problems by referencing the developed countries’ experience in providing policy support for environmental protection industry based on science & technology investment and financial performance; finally, the paper sums up the research viewpoints and elaborates on the its shortcomings as well as the future research direction.Two conclusions are drawn in this paper: the first is about profitability. Foreign R&D investment has a negative influence on environmental protection enterprises’ profitability; the main business profitability and net assets returns ratio decrease with the increase of R&D investment intensity. Domestic R&D investment has a negative influence on environmental protection enterprises’ profitability; the main business profitability and net assets returns ratio decrease with the increase of R&D investment intensity. On this point, the domestic and overseas researches are consistent with each other; the second is about growth ability. Foreign R&D investment has a positive influence on environmental protection enterprises’ growth ability; the main business profitability and net assets returns ratio rise with the increase of R&D investment intensity. Domestic R&D investment has no influence on environmental protection enterprises’ growth ability. On this point, there is a great difference between the domestic and overseas researches. There are the following several specific reasons for the difference: first, the difference in government’s science and technology policy; second, the difference in fiscal subsidies; third, the difference in tax preference; fourth, the difference in financing channels; fifth, the difference in environmental awareness.There are some innovation points in this paper. Firstly, the paper makes a systematic comparative study on domestic and overseas science and technology investments in environmental protection from the perspective of financial performance and institutional support, to analyze the current shortcomings and flaws in China, to propose suggestions for the perfection of system from the angle of finance, revenue and environmental protection system support. Secondly, it uses multivariate regression analysis for an empirical test, to compare and analyze the difference between home and abroad as well as China’s disadvantages from the empirical point of view, and makes an analysis on the reason for the disadvantages, to explore the focus of attention in the future development of China’s environmental protection industry.