Research On Corporate Environmental Protection Investment Strategy Selection And Corporate Performance Under Environmental Regulations

Under environmental regulation,heavy polluting enterprises will be restrained and supervised,and will be encouraged to adopt technological innovation to eliminate the old production equipment and production methods that pollute the environment and create new clean production methods.So which of the three environmental protection investment strategies,evasive environmental protection investment strategy,reactive environmental protection investment strategy and active environmental protection investment strategy,has the most positive impact on enterprise performance? On the premise of summarizing and sorting out the current theories of environmental regulation,this paper discusses how environmental regulation affects companies to make different environmental protection investment strategies and what economic consequences different environmental protection investment strategies have on companies.Zijin Mining is selected as the case study object,and three kinds of environmental protection investment strategies selected by enterprises under environmental regulation are studied by using the method of single case study.Combined with the three stages of environmental regulation reform,this paper explores the economic consequences of Zijin Mining’s three environmental protection investment strategies under different stages of environmental regulation.The research shows that evasive,coping and active environmental protection investment strategies have different effects on the performance of enterprises.In a short period of time,choosing the escape type environmental protection investment strategy can improve the enterprise performance rapidly,but in case of serious pollution accidents,the escape type environmental protection investment strategy will damage the brand image of the enterprise and have a negative impact on the enterprise performance.The choice of coping environmental protection investment strategy is the company’s improved strategy after receiving the punishment of environmental regulation.Compared with the escape type environmental protection investment strategy,the increase of environmental protection investment in the response type environmental protection investment strategy leads to the rise of product cost,which has a certain negative impact on the company’s strategicperformance.Although choosing the active environmental protection investment strategy will increase the cost,the technological innovation not only achieves the purpose of preventing pollution,but also brings the efficiency of resource utilization.Active environmental protection investment strategy will have a positive impact on enterprise performance from the aspects of improving enterprise image,establishing and improving rules and regulations,strengthening innovation ability,etc.Finally,the conclusion of the study provides theoretical guidance for enterprises to choose better environmental protection investment strategy under environmental regulation.