The Mediating Effect Of Investor Confidence In The Relationship Between Environmental Performance And Corporate Value

Since 2010,China has been the second largest economy in the world.The rapid development of Chinese industry not only creates the miracle of "Made in China",but also generates a large number of large-scale enterprises with heavy pollution and high emission.They help China’s economic growth and produce a series of negative social externalities,such as resource exhaustion,ecological imbalance and environmental pollution.This is the product of China’s economic and social development strategy of "pollution first,then treatment".However,with the strong domestic and international repercussions caused by environmental deterioration,pollution has brought a significant long-term burden to the Chinese public.With the implementation of sustainable development strategy,the change of public awareness of environmental protection and the emergence of green economy have a tremendous impact on the operation and management of modern enterprises.Based on the background that the mode of economic development of our country is in the transition period,the rational thinking of human economic activities,the contradiction between environment and economic development is becoming more and more prominent,and on the basis of the analysis of sustainable development theory,information asymmetry theory,behavioral finance theory and stakeholder theory,this paper takes 104 listed companies in heavy pollution industry as the research object.Using the sample data from 2013 to 2017,the hypothesis was tested by descriptive statistical analysis,correlation analysis,multiple regression analysis and stability test.The empirical results show that enterprise environmental performance plays a positive role in promoting enterprise value.As a strategic arrangement of communication between enterprises and society,enterprise environmental performance meets the expectations of stakeholders for enterprises,and ultimately transforms the acquisition of heterogeneous resources into the improvement of enterprise value in the process of improving enterprise image.The better the environmental performance of enterprises,the stronger the investor confidence,and the better environmental performance forms the credible expectation of investors for the future of enterprises.Investor confidence plays an incomplete positive intermediary role in the relationship between environmental performance and corporate value.Investors’ concerns are responded and satisfied in the practice of corporate environmental performance.The favor and confidence of enterprises ultimately reflects the rise of stock prices and the improvement of corporate value.From the government level and the enterprise level,the paper proposes that the government advocates pollution enterprises to pay attention to environmental performance,increase subsidies for corporate environmental governance,build an enterprise value growth mechanism driven by investor confidence.