Research On The Impact Of Environmental Protection Investment On Enterprise Value Under Environmental Policy Changes

Increasingly strict environmental protection policies require companies to consciously fulfill their social responsibilities,increase investment in environmental protection,carry out technological innovation,and produce environmentally friendly green products to achieve the goals of protecting the environment and saving resources.Increasing the scale of environmental protection investment will definitely increase the cost of enterprises.In the short term,environmental protection-related expenses will affect the increase of profits.However,in the long term,environmental protection investment can promote enterprises to innovate environmental protection technology and upgrade production models.And transformation,to promote high-quality development of enterprises,and ultimately enhance corporate value.In order to investigate whether the new Environmental Protection Law implemented in2015 will help enterprises to increase environmental protection investment and whether it will have a positive effect on the relationship between environmental protection investment and corporate value,this article takes the data of listed companies in China's heavy pollution industries in 2011-2018 as Samples,comparing environmental protection investment before and after the implementation of the new "Environmental Protection Law," and the difference in the impact of environmental protection investment on corporate value,to judge the effectiveness of the implementation of the new policy.It was found that the implementation of the new "Environmental Protection Law" can promote heavy polluting enterprises to increase investment in environmental protection.Further research found that there is a U-shaped relationship between environmental protection input and corporate value,that is,there is a critical point between environmental protection input and corporate value.Prior to this point,the marginal cost of an enterprise's environmental protection behavior was greater than the marginal benefit obtained.Therefore,environmentalprotection investment has a significant negative impact on the value of the enterprise;after the threshold,the cost of environmental governance by the enterprise is gradually less than its economic benefits.At this time,the impact of environmental protection investment on the value of the company changed from negative to positive.In addition,the implementation of the new "Environmental Protection Law" has the following regulating effects on the U-shaped relationship between environmental protection investment and corporate value: First,the implementation of the new "Environmental Protection Law" can ease the U-shaped relationship between environmental protection investment and corporate value,making its curve more It is gentle;secondly,the implementation of the new "Environmental Protection Law" can move the inflection point of the U-shaped curve of environmental protection investment and enterprise value to the right;finally,the implementation of the new "Environmental Protection Law" can improve the U-shaped curve of environmental protection investment and enterprise value The overall level.