Local Government Behavior And Environmental Protection Investment Of Listed Companies

In recent years,China's economy has made great progress,but it has also paid a huge environmental cost.The contradiction between the environment and the economy has become an important factor affecting the sustainable development of China's economy.The problem of environmental pollution cannot be ignored.Enterprises are the main producers of pollution.In line with the polluter pays principle,companies should assume major pollution control responsibilities.However,of the total amount of environmental protection investment in China,more than 70%are government expenditures.Due to the significant positive externalizations of environmental quality and the nature of public goods,coupled with the large investment in environmental protection,long payback period,and unstable performance,the incentive for companies to actively invest in environmental protection is insufficient.Compared with the central government,local governments have more binding and influence on regional companies.The behavior of local governments significantly affects the production and business activities of enterprises in the region.In this context,exploring the influence of local government behavior on environmental protection investment in enterprises and analyzing the reasons behind it can help local governments find a support point in the development of the economy and the protection of the environment,and effectively guide enterprises to increase their investment in environmental protection in order to achieve economic development.Coordinated development of the environment provides a reference.This paper analyzes the impact of local government behavior on the environmental protection investment of listed companies based on the perspective of environmental governance.Based on the availability and quantification of data,it selects and promulgates local environmental laws and regulations,implements local environmental laws and regulations,and implements the "three simultaneous" system,The collection of sewage charges,collection of taxes related to the environment,environmental subsidies,and disclosure of environmental information are independent variables,and the scale of listed companies' environmental protection investment is used as the dependent variable to conduct research on 147 A-shares in Shenzhen and Shanghai in 2012-2016.Industry listed companies are research samples and use EVIEWS software for data processing.Through the analysis of descriptive statistics and regression results,this paper has reached the following conclusion:At present,the level of environmental protection investment of listed companies in China is still low,and companies that disclose environmental protection investment in corporate social responsibility reports account for a lower proportion of the total listed companies;Implementation of local environmental laws and regulations,implementation of the"three simultaneous" system,the collection of sewage charges,the collection of environmental-related taxes,environmental protection subsidies,etc.can promote the listed companies to increase environmental protection investment and actively carry out pollution control;and the promulgation of local environmental laws and regulations and Environmental information disclosure has no significant effect on the environmental protection investment of listed companies.Therefore,this paper proposes that local governments should increase the flexibility in formulating policies and information collection capabilities,and increase the level of information disclosure to increase public participation.Enterprises should actively fulfill their social responsibility recommendations.The conclusion of this paper has certain reference significance for local governments to formulate policies and guide the environmental governance of listed companies.