Effect Of Energy Saving And Emission Reduction Policy On Stock Return And Environment Governance Capacity Of Manufacture Firms

Since the end of 1970 s,the Chinese government has adopted the economic growth model of "current production,later governance".While promoting the rapid economic development,Chinese energy demand has been growing rigidly.Restricted by domestic resources security capacity and environmental capacity,Chinese economic and social development is facing more bottlenecks in resources and environment.Therefore,China has issued a series of relevant regulations on emission standards in the past decade,aiming to clarify the main environmental protection responsibility of enterprises,strictly implement environmental protection laws,regulations and standards,and implement the targets of energy conservation and emission reduction.However,the public may question the enforcement of environmental laws promulgated by the government.Meanwhile,there is still a heated debate in academic fields about whether Chinese environmental laws and regulations cause economic impact.Most of the existing literature still focuses on the impact of the Two Control Zone policy issued in 1998 on the national economic indicators,but the research on the energy-saving and emission reduction policies issued in the last decade is very few.Therefore,this paper takes the energy-saving and emission reduction policies issued by the State Council in 2009,2012 and2017 as the research object,expecting to study the effect of above policies on share price of the listed manufacturing industries from the perspective of investors.In addition,in the long run,listed companies not only consider their own production efficiency and corporate performance,but also assume corporate social responsibility in the process of production and operation.Therefore,we can study the impact of environmental scores in the social responsibility reports released by listed companies in the years before and after the policy announcements in order to judge the long-term impact of energy saving and emission reduction policies on listed companies.This paper chooses the listed manufacturing companies of A shares in Shanghai and Shenzhen Stock Exchanges,involving 29 secondary manufacturing industries.Using the event study method,this paper analyses the impact of three energy saving and emission reduction policies issued during the 11 th Five-Year Plan to the 13 th Five-Year Plan on the stock prices of 29 manufacturing sub-industries.Secondly,using multiple regression analysis,the impact of industry pollution intensity and environmental responsibility score on corporate stock price was studied.Finally,this paper uses DID model to study the impact of energy saving and emission reduction policies announced in 2012 on the environmental responsibility score of enterprises in 2010-2017,in order to judge the long-term effectiveness of energy saving and emission reduction policies.The results of event study show that the energy saving and emission reduction policies promulgated in 2012 and 2017 have a significant negative impact on the stock prices of most manufacturing sub-industries.Multivariate linear regression results show that when energy saving and emission reduction policy was announced in 2012,enterprises with higher industrial pollution intensity were affected by environmental regulation more.At the same time,when energy saving and emission reduction schemes were promulgated in 2012 and 2017,the higher the score of environmental responsibility in corporate social responsibility reports,the smaller the negative impact of environmental regulation.The final DID model results show that enterprises located in the Two Control Zone and with higher industrial pollution intensity strengthen the willingness to disclose corporate environmental responsibility and improve their own environmental governance ability facing the energy saving and emission reduction policies announced in 2012.However,after distinguishing the state-owned attributes of enterprises,this paper finds that the willingness to disclose environmental information of state-owned enterprises has not increased,and the ability of environmental governance has not improved.Based on the above empirical results,this paper puts forward corresponding suggestions for manufacturing enterprises and environmental regulatory agencies.This paper provides decision-making basis for stakeholders from multiple perspectives.For investors,it is better to help investors interpret policies,discover and analyze information and finally make rational judgments when similar environmental incidents occur in the future.For enterprises,it can provide reference suggestions and improvement direction for future environmental information disclosure,and help improve stock price appearance of listed companies when facing energy saving and emission reduction policies.Moreover,for the government,our results help it deeply analyze the reasons for the effective policy which is of great reference significance and reference value for the formulation and implementation of future environmental protection policies,and to improve the effectiveness of environmental regulation.