The Research On The Influence Of Environmental Regulation On Financial Performance Of Chemical Industry Enterprises

Since the 12th Five-Year Plan period,the Party and the state have attached great importance to ecological and environmental protection,made all-out efforts to prevent and control air,water and soil pollution,and issued strict environmental policies for industries with high pollution levels.The chemical industry,as a large-scale and highly polluting industry,is severely restricted by the government’s environmental regulations.However,environmental regulation not only restrains the business behavior of enterprises,but also has a certain impact on the financial performance of enterprises.S Company is one of the major integrated refining and chemical enterprises in China.In recent years,according to the relevant requirements of national energy conservation and emission reduction,S Company has effectively controlled the discharge of waste water and waste gas.On this basis,S Company adheres to the principle of cost reduction,increases investment in innovation and optimizes business model,thus enhancing the competitiveness of the enterprise.In this paper,S Company is selected as the research object to judge the impact of environmental regulations on S Company from the following aspects:the impact of environmental policy issuance on enterprises,environmental administrative penalties received by enterprises,enterprises’ exploration of environmental protection mode,pollutant discharge and environmental protection input.The financial performance scoring formula calculated in Chapter 4 is used.Eight financial data of S company from 2016 to 2020 are selected to calculate its financial performance.Combining mediation effect of enterprise technical innovation,analyzed the influence of environmental regulation on enterprise financial performance and found that in a short period of time the deepening of environmental regulation will cause the loss of corporate financial performance,but at the same time,the deepening of environmental regulation will be reversed transmission technology innovation,enterprise development form the endogenous power,from the Angle of the lower costs and environmental risk produce positive effect to the enterprise’s financial performance,Finally promote enterprises to open up a green and healthy development road.This paper studies the relationship between environmental regulation and corporate financial performance through case study.After the impact analysis,the following two conclusions are finally drawn:from a long-term perspective,environmental regulation is conducive to the development of enterprise financial performance,has a positive role in promoting;Technological innovation factors can play a mediating role in the relationship between environmental regulation and financial performance of enterprises.According to the research conclusions,some suggestions are put forward:the government should consider the parallel use of multiple environmental policies according to local conditions,encourage enterprises to carry out environmental technology innovation,and standardize environmental information disclosure system;Enterprises should bring the concept of environmental protection into the strategic development direction of enterprises,cultivate high-quality technical innovation talents,and improve the pollutant emission tracking mechanism to achieve effective control of pollutants,establish a cooperation mechanism,and realize the coordinated development of the industrial chain.