Research On The Impact Of Environmental Regulations On Corporate Performance

Between the 30s and 60s of the 20th century,eight public nuisance incidents in Belgium,the United States,the United Kingdom,Japan and other countries have caused tens of thousands of people to suffer or even die due to environmental problems,called"Eight Major Pollution Incidents",which has caused environmental pollution in developed countries.Concerns and the development of a global environmental cause.Since China's reform and opening up in 1978,China's rapid economic development has also had a serious negative impact on environmental pollution and ecological damage.The report of the 19th National Congress clearly pointed out that the main contradictions in our society have been transformed into contradictions between the people's growing needs for a better life and the development of inadequate imbalances.People have put forward higher requirements for the quality of life,including the ecological environment.The implementation of environmental regulations is the means by which the government solves the"Market Failure"of environmental problems,and it is also an important measure to achieve industrial restructuring.In order to achieve a"win-win"situation of social economy and environmental governance,environmental governance policies have undergone many years of exploration and experience,from a single lack to a complex and diverse development process,and various environmental regulations policies for different industries are competing to emerge,and environmental regulations will be adopted.The impact on corporate performance has been pushed to the academic research boom,which has attracted extensive attention and research.So far,there are three main viewpoints in the academic world about the impact of environmental regulations on corporate performance.The first is the"Traditional Hypothesis",which is believe that strict environmental regulations has caused additional production costs for enterprises,thus inhibiting corporate performance;The second is the"Porter Hypothesis",which breaks the"Traditional Hypothesis"and believes that reasonable environmental regulations will not only lead to the reduction of corporate performance,but will effectively encourage enterprises to seek development,promote innovative production technology,and enhance their competitive advantage.Further compensate for the additional costs incurred by environmental regulations,which have a significant effect on corporate performance;The third is"Uncertain Hypothesis",which is believed that due to the internal factors such as industry,local policy and the enterprise itself and the external environment,the impact of environmental regulation on corporate performance is still unclear.This paper first reviews relevant literatures on environmental regulations,corporate competition strategy and corporate performance at home and abroad,defines the research scope of three research variables,and studies the three hypotheses on the current academic research on the impact of environmental regulations on corporate performance.Based on the summary,on the basis of the previous research results and the actual situation of heavily polluting enterprises,the environmental regulations,enterprise competition strategy and enterprise performance theory model were constructed,and eight basic assumptions were put forward.Then,taking heavy polluting enterprises as the research object,the research variables were measured by Likert seven-scale scale^[1],and finally 161 effective questionnaires were collected,and SPSS 22.0 and AMOS 21.0 statistical analysis tools were used to analyze environmental regulations,corporate competition strategies and enterprises.The performance is refined and classified,and the theoretical model and the collected data are empirically studied.Finally,the paper examines the impact of environmental regulations on corporate performance based on the perspective of corporate competitive strategy.The research shows that command and control enviornmental regulations has no definite effect on the competitive advantage;Market-based Incentive enviornmental regulations and voluntary environmental reguations have a significant positive impact on the competitive advantage of enterprises;The competitive advantage of enterprises has a significant positive impact on corporate performance.Finally,this paper proposes the proposed countermeasures to improve environmental regulation policies and improve corporate competition strategies under the pressure of environmental regulations from the perspective of national macro-control and enterprise operations based on the results of theoretical and empirical analysis,in order to optimize China's environmental regulation policies.It also points out the path to achieve financial performance with the implementation of the competition strategy,in order to provide a theoretical basis for optimizing China's environmental regulation policy.