Political Connection,Official Governance And Corporate Environmental Investment

The issue of environmental governance is the hotspot and focus of scholars' research,especially the environmental problems of enterprises,which have an impact on the social and public living environment.Scholars mainly analyze the environmental investment of enterprises from the aspects of human capital,non-political system and nature of enterprise property rights.Influencing factors.In recent years,China's environmental problems have been frequent,especially in corporate environmental problems.Enterprises have illegally accumulated and discharged pollutants and safeguarded economic interests.However,in the long run,environmental quality has been neglected and a series of social problems have arisen.Moreover,there is a political connection between enterprises and government agencies,and there may be collusion.The state has also proposed policies and recommendations for improving the relationship between government and enterprises,incorporating environmental protection into the official assessment system,and implementing environmental supervision in various provinces.So will political connections reduce corporate environmental investment?Will the new official assessment system and environmental supervision increase the company's environmental investment?This research not only has academic significance,but also enriches the existing theoretical mechanism,and at the same time has important practical significance.This paper first analyzes the relationship between political connection,official governance and corporate environmental investment.Among them,the official governance is measured from the aspects of official promotion and environmental supervision.The enterprise environmental investment is obtained through the standardization of the company's total assets at the end of the year.Then,based on the sample of China's 2013-2017 listed companies,the fixed-effect and GMM regression models were used to empirically analyze the relationship between the three,political relationship,official promotion and corporate environmental investment,and then use the double difference method.Firstly,the relationship between environmental supervision and corporate environmental investment was first described by using the pseudo-natural experiment,and then the relationship between political connection,environmental supervision and corporate environmental investment was analyzed empirically.The results of empirical analysis show that enterprises with political connections in China will reduce environmental investment.After establishing political connections with the government,enterprises can seek convenience,and can selectively disclose to the public when corporate environmental information is disclosed.Second,after environmental protection being included in the official assessment system,companies with political connections will increase environmental investment.At this time,government officials will pursue personal achievements to obtain promotion,which will reduce political ties with enterprises.At the same time,after the implementation of environmental supervision in the provinces,enterprises with political connections will also increase environmental investment.After the establishment of environmental protection supervision pilots in various provinces,enterprises will increase environmental investment during the inspection period in order to meet the standards for long-term development,and relevant government officials will also consider reducing their careers or giving up their links with enterprises.Based on the above research conclusions,this paper proposes the following policy recommendations:clarifying the responsibility of environmental issues,improving the responsibility system for environmental issues management,strengthening the supervision of environmental information disclosure of listed companies;improving the information disclosure system for environmental governance;strengthening the supervision of environmentally sensitive industries to prevent problems before they occur;improving the official assessment mechanism and increasing the punishment;strengthening the supervision after environmental protection to prevent similar problems from appearing in the enterprises and ensuring the effectiveness of environmental protection supervision.