An Empirical Study On The Impact Of Environmental Regulation On The Performance Of Basic Chemical Enterprises

In recent years,government departments pay high attention to increasingly serious environmental pollution,and issue a great many of relevant policies and regulations of environmental protection.as the main source of environment pollution,the enterprise has become the focus to the government environmental policy and regulation,coordinating the contradictions between environmental protection and economic development have become important research problem of academia,a lot of valuable theory about the relation between environmental regulation on enterprise performance.Early western scholars have found that environmental regulation has a strong restraining effect on the performance of enterprises.Environmental regulation increases the operating costs of enterprises and occupies the profit space.Now more and more domestic scholars’ attention is attached to the porter hypothesis theory,the theory is based on the western developed country developmental experience on the relation between environmental regulation and Enterprise performance level.to some extent,environmental regulation increases the enterprise cost burden while the enterprise undertakes the external costs of environmental pollution enterprises themselves.but government can design appropriate environmental regulation policy tool,guiding enterprises to engage in technological innovation activities,increasing the reform and development of green technologies.enterprise apply green technology operations will help them get rid of environmental regulation compliance cost pressures,and gain market competitive advantage,Finally,the compensation effect of technological innovation can offset the direct negative effect of environmental regulation on enterprise performance and promote the positive improvement of enterprise performance.Besides potter theory framework also include efficiency compensation effect in order to response to the rising production costs caused by environmental regulation,enterprise began a series of reform of the enterprise and implement strict cost management by streamlining business structure,improve the efficiency of resource use,clamp down on unnecessary spending and so on to improve enterprise efficiency,reduce environmental governance cost impact to the enterprise management.Based on porter’s theory,this paper studies the impact of environmental regulation on the performance of basic chemical enterprises.The basic chemical industry is one of the industries that have the most serious damage to the ecological environment and is also the industry that is most seriously affected by the government’s environmental regulation policies.Due to the particularity of the strategic position of basic chemical enterprises,as the basic industry of China’s industrial system,its importance is self-evident.This paper firstly reviews the related literature of environmental regulation on enterprise performance,and analyzes the financial status,environmental regulation status and technological innovation status of basic chemical enterprises.On this basis,combining with the related research conclusion to build the research mechanism of this article,put forward theoretical hypothesis according to the present situation of basic chemical enterprises and introduce relevant variables to establish model,then using the basic chemical public listed company in 2011-2017 panel data to undertake the empirical test of environmental regulation on the basic chemical enterprise technology innovation,enterprise efficiency and the influence of enterprise performance,the following conclusions are drawn: 1)the environmental regulation have a negative effect to the performance of basic chemical enterprises,at present the innovation compensation effect of the environmental regulation and efficiency compensation effect has not been able to offset the direct effect of environmental regulation on basic chemical enterprise performance;2)environmental regulation has a negative effect on technological innovation input and R&D patent output of basic chemical enterprises,and environmental regulation has an obvious crowding-out effect on R&D input of basic chemical enterprises at the current stage;3)The investment in technology innovation and the improvement of enterprise efficiency can positively promote the performance level of basic chemical enterprises;4)has an obvious positive effect on the enterprise efficiency of basic chemical enterprises,but the promoting effect has a certain scope,when the intensity of environmental regulation exceeds a certain degree,environmental regulation negatively affects the enterprise efficiency;5)Enterprise technology innovation plays an intermediary role between environmental regulation and performance of basic chemical enterprises.Finally,based on the results of theoretical analysis and empirical analysis,reasonable countermeasures are proposed from the government and enterprise levels respectively,hoping to achieve the win-win situation of the development of basic chemical enterprises and environmental protection.