Research On The Effect Of L Company’s Environmental Information Disclosure Violation On Financial Performance

Due to the continuous development of economy and society,environmental pollution problems occur frequently,and the public is increasingly concerned about whether environmental pollution will occur in the production and operation process of enterprises.At present,environmental protection is a major problem to be solved in China’s heavy pollution industry.In addition to imposing pressure on enterprises by formulating relevant policies and regulations,enterprises should also consciously recognize their social responsibilities,enhance their awareness and ability of environmental governance,consciously change their attitude and behavior towards environmental problems,and fulfill their environmental protection obligations stipulated by law.However,the environmental awareness of Listed Companies in China is generally weak,and there are some problems in environmental information disclosure.Due to the violation of environmental information disclosure of L company,the CSRC has punished it and made a key notification.This thesis This discusses the impact of this disclosure violation on the financial performance of L company.Starting with the research results of relevant scholars at home and abroad,this thesis summarizes the mechanism of environmental information disclosure violations on financial performance based on information disclosure theory,stakeholder theory,information asymmetry theory and corporate social responsibility theory.Then using the event study method,it is found that after the event day t=0,the abnormal return rate for four consecutive trading days is negative,and the excess cumulative return rate of L company shows a ladder like continuous downward trend during the event period,which indicates that this violation has a great negative impact on the stock price of L company and lasts for a long time.Secondly,the factor analysis method is used to study the impact of information disclosure violations on the financial performance of L company.Through the analysis,it is concluded that the overall performance of L company is negative,the operating performance of the enterprise is significantly reduced,and it ranks lower in the industry.Then the financial indicators are used to make a specific analysis of L company,and the horizontal comparison of the same industry and the vertical comparison of nearly six years from 2015 to 2002 are carried out.The research shows that the profitability,solvency and growth ability of L company are affected by the violations of environmental information disclosure,and its development speed is slower than that of other enterprises in the industry.Finally,it puts forward the following six suggestions for L Company:first,improve the responsibility consciousness of L company’s environmental information disclosure;second,increase the content and level of L company’s environmental information disclosure;third,increase the investment related to environmental information disclosure;fourth,L company should establish a positive environmental protection culture;fifth,avoid fluke and strengthen the early warning mechanism;sixth,learn from the experience of excellent enterprises in the industry.