Research On Infiuence Of Environmentai Protection Into Buslness Value

With the acceleration of productivity growth and industrialization process, enterprises create huge profits; in the meanwhile, they bring about a series of environmental problems,among which the hazy weather is currently the most concerned. Under the guidance of the sustainable development strategy, protecting the environment and conserving resources is no longer a simple slogan, companies must undertake the task of protecting the environment,changes in business strategy for environmental management as well as environment-friendly operations. Furthermore, the 13 th Five Year Plan also proposed to reform environmental governance. This paper selected the heavy chemical enterprises as the research object because they have a great influence upon environmental pollution and they are the focus of the Environmental Protection Agency.From the perspective of the theoretical research and empirical research, the paper firstly sorts out the documents related to the impact of the environmental investment on the enterprise value. Then based on the literature review and signaling theory, stakeholder theory,the theory of sustainable development, social responsibility theory and legitimacy theory, the hypothesis is put forward in the paper and models are built. In order to validate the model and assumption, this paper selects 489 listed companies in the heavy chemical industry to collect sample data, ultimately collecting the data of sample variables of 79 companies for six consecutive years from 2009 to 2014, and adopts empirical analysis methods including descriptive statistics, correlation analysis, regression analysis of the data to test the proposed hypothesis. The empirical results show that the investment in environmental protection of the listed companies undertaking the polluting industries has a negative impact on the short-term financial performance. According to regression analysis, environmental investment has a negative influence on the current, first-lagged, second-lagged and third-lagged enterprise value. However, by further analyzing the data of the lag four and five phases, it can be found that investment in environmental protection has a positive correlation to the enterprise value,which appears significantly in the lag five phase. Moreover, it’s found that the nature of enterprise, geographical location and ownership concentration have a significant impact on corporate value from the selected control variables while the scale of enterprise has no significant impact on corporate value. Therefore, the paper draws conclusions from the empirical results that a lot of current environmental investments indeed inhibit the current performance of the enterprise; but in the long term, current environmental investment can beavoid the long-term risks and have a positive effect on the long-term value of the enterprise.In conclusion, this article makes some suggestions to enhance the awareness of the environmental protection investment and value of listed companies from the three levels of enterprise, government and society. It’s essential to make chemical companies beware the long-term effect of the investment in environmental protection and improve the level of investment in environmental protection as well as implement a proactive environmental strategy. In the meantime, the government should strengthen the supervision of the heavy chemical industry, introduce preferential tax policy, offer subsidies, approve of the low interest loan and improve sewage charge system and environmental protection incentive system. In addition, social departments should intensify supervision on the environment to maintain environmental sustainability.