Research On Environmental Regulation,Agency Cost And Company Financial Performance

In recent years,the development of enterprises has been accelerating day by day,but the environmental problems have become more prominent,especially the heavily polluting enterprises represented by chemical enterprises.The managers of these enterprises violate the interests of shareholders,pollute and waste in the process of production and operation,and cause greater burden to the environment.In order to solve these problems,environmental regulations emerge as the times require.However,can the formulation and implementation of environmental regulations standardize the management behavior of enterprise managers on environmental issues,alleviate the principal-agent problem of trustees due to waste of production,pollution exceeding the standard,occupation of environmental protection funds and other environmental aspects,and then reduce agency costs?In addition,how does environmental regulation affect the company's financial performance,and can it achieve a win-win situation between environmental protection and performance growth?Can their impact on financial performance be mediated by agency costs?In order to solve these problems,this paper will study the relationship among environmental regulation,agency cost and corporate financial performance.This article selects the 2014-2018 A-share chemical industry listed companies as the total sample of research,and further divides the sample into eastern,central and western regions.The externality and regulation theory,principal-agent theory,industrial organization theory and sustainable development theory Theoretical basis,using FE and IE models to study the impact of three different types of environmental regulation(command control,market incentive and public participation)on agency costs,financial performance,and agency costs in different environmental regulations on financial performance What role it played in the process of influence.The research results show that:(1)Three different environmental regulations have different effects on the company's financial performance.The order-controlled environmental regulation has weakened the financial performance of the company.This weakening effect is significant for chemicalcompanies in the eastern,central and western regions,and the degree of weakening has no obvious difference between regions.Market-based environmental regulation can effectively improve the financial performance of the company.This promotion effect is significant in all regions,and the promotion effect on chemical companies in the eastern region is higher than that in the central and western regions;public participation-based environmental regulation can also improve the company's financial performance,and the promotion effect is significant and no significant difference in each region.(2)The three different environmental regulations can effectively suppress the company's agency costs.The suppression effect is significant in the eastern,central and western regions,and the degree of suppression is not significantly different in each region.(3)Agency costs play a concealing effect in the process of weakening financial performance by command-and-control environmental regulation,and play a partial intermediary effect in the process of improving financial performance by market incentive and public participation environmental regulation.The effect is significant in the eastern,central and western regions.