Research On The Relationship Between Environmental Management Institutional Investors And Financial Performance Of Forestry Enterprises

President Xi Jinping delivered a keynote speech in the 4th session of 13th National People’s Congress "to strengthen the control at the source,enhance the green transformation of key industries and accelerate the process of low-carbon development".The forest is a vital component of ecological resources,traditional forestry enterprises and others either directly or indirectly consuming forest resources during production and operation is broadly characterized as the forestry enterprise.Environmental management measured by ESG is a set of standards putting emphasis on environmental,social and business governance,which indicates the degree of green transformation and ecological civilization.Consequently,forestry enterprises emerge as the key industry within green transformation.Institutional investors with expertise and strategic vision supervises and involves in the governance of forestry enterprises,which allowing them to accelerate the green transformation by adjusting internal resources allocation,facilitating technological upgrading,undertaking more social responsibilities and pushing industrial diversification.Thus,it is crucial to gain a comprehensive understanding of the role played by institutional investors beyond the study for the relationship between environmental management and financial performance of forestry enterprises.The main research focus of this thesis is to analyze the interaction between institutional investors,environmental management and financial performance of forestry enterprises.The literature review is conducted to collect and analyze recent literature in order to determine the research direction.The research is under the guidance of relevant theories such as information asymmetry,signaling and principle-agent.By selecting forestry enterprises from the database of SynTao Green Finance as the sample,a multilinear regression model with institutional investors as the moderator variable is constructed to examine each pair of relationship between environmental management,institutional investors and financial performance,particularly the moderating effect of institutional investors on the relationship between environmental management and financial performance.Based on the result from empirical study,recommendations to forestry enterprises are proposed from both the perspective of enterprises themselves and government.This paper stands the perspective of ecological civilization,to redefine the boundary of forestry enterprises,utilize the ESG index established by SynTao Green Finance to quantify environmental management and introduce institutional investors as the moderator variable,which provides evidence for forestry enterprises to enhance green transformation,optimize industry structure and accelerate development under the lead of institutional investors.