Research On The Influence Of Environmental Protection Investment On Financial Performance Of Listed Mining Companies

With the implementation of new "environmental law" and the major reform of environmental governance mechanism of the 13 th Five-Year Plan,the government attaches great importance to environmental management problems of heavy pollution industry and puts forward more strict requirements for companies to disclosure environmental pollutants.The government intensifies environmental punishment dynamics to heavy pollution industry and appeals to companies should increase environmental protection investment.Also,companies should attaches great importance to pollution source control and environmental renovation into practice which accelerate the construction of ecological civilization system.Not only is mining industry an important part of the national economy,but also is the polluting industry which should take social responsibility actively to protect environment and saving resource to realize sustainable development.Companies should build up positive business philosophy and incorporate the environment management into the development strategy plan which should realize the coordinated development between environmental prevention and remediation.The increasing of the environmental protection investment is bound to affect the companies' financial performance,and the different environmental protection investment may produce different effects.Based on this,this article will set preventive and restorative environmental protection investment as the breakthrough point and discuss the impact of environmental protection investment on financial performance.First of all,this article reviews research literatures about environmental protection investment,financial performance and the empirical study of environmental protection investment and financial performance.Based on the predecessors' research,this paper gives the definition and new division of environmental protection investment.Then,according to the theory of social responsibility,sustainable development theory and stakeholder theory,this article puts forward research hypothesis and designs variables and then builds regression model.Based on the samples of 75 listed mining companies,through the manual data processing,this paper ultimately select 23 companies full effective sample data of 2010-2015.Finally,this article carries on the descriptive statistics,correlation analysis,and multiple regression models for empirical research.According to the regression analysis,there are following conclusions: Environmental protection investment has positive effects on financial performance which showing the continuity.Specifically,preventive and restorative environmental protection investment both can improve the financial performance of companies which are also sustainable.In comparison,preventive environmental protection investment has a greater positive impact on financial performance.Therefore,mining enterprises should pay attention to environmental protection investment which can bring the positive role of enterprise financial performance.Also,mining enterprises should transfer environmental management center into early environment prevention which can have a more profound impact on sustainable development of the enterprise.According to the research conclusions,this paper respectively puts forward several recommendations from the aspects of enterprise,government and society.Enterprises should put environmental factors into the enterprise strategy plan,optimize the structure of environmental protection investment and strengthen the disclosure.The government should improve the system of environmental information disclosure,provide enterprises with clear disclosure standards,strengthen the environmental monitoring of heavy pollution industry and provide corresponding tax policy or government subsidies to form an effective environmental protection incentive system.The social public and the news media should play a role of environmental supervision and take an active part in environmental protection actively involved in environmental protection to build good social supervision system.