Research On Determinant Factors Of Corporate Enviornmental Investment Behavior

Environmental problems have got more and more serious in recent years, threatening the sustainability of economic development and safety of citizens. Since enterprises cause the majority of pollution problems, their environmental behaviors deserve our attention. In order to understand the environmental investment behavior mechanism of the corporate, this paper identifies the determinant factors affecting the decision-making of corporate environmental investment behavior based on the stakeholder theory; and by using 426 A-share listed companies from the environmental sensitive industries in 2009-2013, we examined to what extent these factors may affect environmental investment. This paper find that environmental investment behavior of listed companies is positively oriented to fill up the government's environmental regulation; the role of other stakeholders, like shareholders and creditors tested in this study in effecting environmental investment, is found to be positive; when companies are in a perfectly competitive market and completely monopolized market, the environment investment will be higher, and when the enterprise and competitors go hand in hand, the environmental investment is relatively low; the better the free cash flow condition the company has, the more likely it implemente environmental investment. Another interesting finding is that companies operating in economically developed eastern areas have higher level of environmental investment. The findings of this paper can help to encourage enterprises to inplement more environmental behavior, and make them more proactive to take responsibility of environmental protection.