The Impact Of Air Pollution On Heavy Polluting Listed Companies

In recent years,with the climate warming,steady and steady weather has increased,and the industrial structure is still in the continuous stage of transformation and upgrading.The number of haze weather in China is still high.At the same time,as the nineteen major reports have pointed out,the major social contradictions in our country have been translated into "the contradiction between the growing needs of the people and the uneven development of uneven development".People pay more attention to the problem of the air quality that they depend on.Serious air pollution will threaten the health of people and affect the sustainable development of the society,so the public concern has been aroused.As a result,heavy polluting enterprises are facing greater social pressure.Then,as one of the main air polluters,will heavy polluting enterprises carry out earnings management?Will air pollution affect the stock return of heavily polluting enterprises?The study of these problems is of important theoretical and practical value to clarify the relationship between air pollution and the development of enterprises,and then put forward some pertinent countermeasures and suggestions.This paper carries out an empirical study from two aspects.First,under the situation of more serious air quality,based on the hypothesis of the political cost of earnings management,are there any motives and phenomena of the downwards earnings management of the heavily polluted enterprises?If so,what is the state of downward earnings management?How much earnings management has been carried out?This kind of study is relatively rare.In this paper,the air pollution index(Air pollution Index,hereinafter referred to as API)and the financial data of the air quality index(Air quality Index,hereinafter referred to as AQI)in 2015-2016 years and the related financial data of heavy polluting enterprises were collected in 2015-2016 years.The influence of air pollution on the earnings management of local heavy polluting enterprises was tested by using different Jones models.The earnings management behavior of heavy polluting enterprises in 2008-2012 and 2015-2016 is analyzed.The results are as follows:(1)in 2008-2009 years,the enterprise has a downward eranings management at API=100 and API=200,but there is a phenomenon of earnings management at the breakpoint API=300;(2)from the overall data of 2010-2012 years and 2008-2012 years,the enterprise has a downward earnings management at the breakpoints of API=100,200 and 300.(3)it is interesting to see from the data of 2015-2016 years that the enterprise is at every breakpoint,and there is no obvious downward surplus management behavior,especially at the breakpoint AQI=300,and the earnings management is positive.I can’t help thinking whether the whole society is aware of the problem of air pollution,so enterprises don’t need to deliberately control earnings management.For this phenomenon,further research is needed in the future.Second,what is the impact of air pollution on the stock returns of heavily polluting enterprises listed in key cities?Although there are many studies on the impact of air pollution and stock returns at home and abroad,there are few studies on the degree of change in the stock retums at different air quality levels.In this paper,the air quality index(AQI)of the key monitoring cities in China and the stock market return data of the heavy pollution enterprises in these cities in December of 2014-2016 years are collected,and the effect of air pollution on the stock returns of local heavy polluted enterprises is also tested by the multiple breakpoint regression model.The results are as follows:(1)when the air pollution(AQI=300)is serious,it has a negative impact on the stock returns,and the results are robust.(2)there is a time effect on the negative impact of air pollution on stock returns,and there is a significant correlation between air pollution and stock returns after 2013.In this paper,the reasons behind these phenomena are briefly discussed.Finally,it is suggested that serious air pollution should be strictly controlled and air pollution is continuously faced,so that the air pollution can be harnessing and the sustainable development of the city.This paper first studies the influence of air pollution on the earnings management and stock returns of the key cities above the cities of China.The conclusions can provide an empirical reference for the government supervision departments,stock market investors and business operators.