The Influence Of Government Environmental Protection Subsidy On Enterprise Environmental Protection Investment

In recent years,China’s economy has developed rapidly,Enterprises,as the economic entities,have made great contributions to economic development,but they are also the source of environmental problems,enterprises’ environmental and social responsibility has attracted more and more attention from the public.However,due to the characteristics of environmental externalities,high cost and long time cycle of environmental governance,enterprises lack the initiative to invest in environmental protection.At this time,the government needs to intervene.providing government subsidies for environmental protection and strengthening supervision.But whether the government’s environmental subsidy can really promote enterprises to increase environmental protection investment and enhance enterprises’ environmental protection initiative? How do some internal and external factors affect the relationship? What is the relationship between government environmental protection subsidy,environmental protection investment and enterprise performance?In order to explore the above issues,based on the theories,this paper reviews the relevant literature on government subsidies and corporate environmental investment,mainly analyzes the impact of government subsidy on enterprises’ environmental protection investment,as well as the moderating effect of internal control on the relationship between them,it also compares the differences of the regression results of sample enterprises in different property rights and different regions,and adds the variable of enterprise financial performance into the further analysis,looking for the internal motive force for the enterprise’s environmental protection investment.In order to study the above problems,based on previous domestic and foreign literature and theoretical basis,The results show that:(1)government subsidy can increase the investment of environmental protection,but it has crowding-out effect on the part of Enterprise’s own capital;(2)the internal control of enterprises has a positive effect on the relationship between government subsidy and investment in environmental protection;(3)government subsidy plays a more important role in promoting the investment in environmental protection of non-state-owned enterprises and eastern China;(4)further analysis shows that the environmental investment has a lagged positive effect on the financial performance of the enterprises.moreover,the government subsidy for environmental protection plays a positive role in regulating the relationship between them.