Research Of The Relationship Between Environmental Performance And Financial Performance Under The Nature Of Property Rights

This paper aims to research the relationship between the environmental performance and financial performance, the effect of the property nature on the relationship between the two. The initiative of environmental protection has a decisive role on environmental performance. And the owner and managers decide the behavior of enterprises. This paper proposes some suggestion about realizing "win-win" of environmental performance and financial performance under the circumstances of the sustainable development from the perspective of property rights based on an empirical analysis.The related theoretical basis includes the sustainable development theory, corporate social responsibility theory and property theory, the literature about the relationship at home and abroad is reviewed, and the hypothesis is put forward in this paper. Based on theoretical analysis the companies listed from 2011 to 2014 of heavy pollution industry in China are the research object. This paper selects the unit operating income discharge decrement as the indicator of environmental performance. The empirical results find that environmental performance and financial performance could arrive at a win-win situation.About the effect of property rights, this paper studies the relationship between environmental performance and financial performance further. State-owned enterprises don’t have an significant effect on the relationship between environmental performance and financial performance. In non-state-owned enterprises, environmental performance has positive effect on financial performance. It is needed to reduce the cost of government supervision. They should take effective environment management methods and environment technology innovation to improve the financial performance and environmental performance in the process of the pursuit of economic interests.This paper puts forward the relevant policy recommendations and points out the deficiency of this study on the basis of theoretical analysis and empirical results. It is needed to discuss the relationship between environmental performance and financial performance by taking different environmental management methods and using more reasonable way to measure environmental performance.