The Impact Of Government Subsidies And Company Environmental Protection Investment On The Financial Performance Of Oil And Gas Companies

With the deepening of ecological civilization construction,China has gradually increased its special environmental protection subsidies for companies,and high-polluting oil and gas companies must also increase environmental protection investment to ensure that oil and gas production meets national environmental protection requirements.Both government subsidies and company environmental protection investment will have a certain impact on financial performance of companies.Through literature research,it is found that the current research results on the relationship between government subsidies,company environmental protection investment and financial performance are mostly concentrated on the relationship between the two of the three.These studies have the shortcomings of weak systemicity and insufficient timeliness.And the research on the internal relationship between the three has not been carried out yet.Therefore,it is necessary to carry out the research on the impact of government subsidies and corporate environmental protection investment on the financial performance of oil and gas companies.The research is helpful to clarify the relationship between the three and establish a benign impact mechanism of government subsidies and company environmental protection investment on the financial performance of oil and gas companies.The paper takes the oil and gas companies listed in Shanghai and Shenzhen as the research object.Based on the research literature on the relationship between government subsidies,company environmental protection investment and financial performance,it uses factor analysis,multiple regression analysis and systematic GMM to explore the impact of government subsidies and company environmental protection investment on the financial performance of oil and gas companies.Firstly,the paper analyzes the status quo of government subsidies,environmental protection investment and financial performance of oil and gas companies.Based on the definition of oil and gas companies and data sources,this paper analyzes government subsidies from the perspectives of environmental protection subsidies and non-environmental subsidies.This paper analyzes the environmental protection investment of companies from two aspects: preventive investment and governance investment.This paper constructs an evaluation index system that reflects the characteristics of the oil and gas industry from the seven dimensions of profitability,asset quality,debt risk,operating growth,cash flow,environmental management,and risk control.This paper uses SPSS23.0 to evaluate the financial performance of oil and gas companies.Secondly,this paper constructs a mechanism model of the impact of government subsidies and company environmental protection investment on the financial performance of oil and gas companies.Based on the characteristics of oil and gas companies,this paper theoretically analyzes the impact of government subsidies on financial performance,the impact of government subsidies on company environmental protection investment,and the impact of government subsidies on financial performance by affecting company environmental protection investment.On this basis,the empirical research hypothesis are proposed.Then this article combs the influence mechanism of government subsidies and company environmental protection investment on the financial performance of oil and gas companies.Thirdly,this paper conducts an empirical analysis on the mediating effect of company environmental protection investment in the process of government subsidies affecting company financial performance.This paper takes financial performance as the explained variable,government subsidies as the explanatory variable,company environmental protection investment as the intermediary variable,asset-liability ratio,company size,distribution concentration,location and ownership nature as the control variables,and introduces an empirical analysis model of intermediary effects.This paper uses Stata15.1 to perform descriptive analysis,multiple regression analysis and robustness test on sample enterprise data.The results of the study show that government subsidies have a positive effect on the financial performance of oil and gas companies,and environmental government subsidies are more significant than non-environmental government subsidies.Environmental government subsidies have a positive role in promoting environmental protection investment of oil and gas companies,while non-environmental government subsidies do not have a significant role in promoting environmental protection investment of oil and gas companies.Environmental protection investment of oil and gas companies has a completely mediating effect on the process of environmental government subsidies affecting financial performance,but it does not have a mediating effect on the process of non-environmental government subsidies affecting financial performance.Under the circumstance that the total environmental protection investment of the company is certain,the preventive environmental protection investment has a completely mediating effect on the process of environmental protection government subsidies affecting financial performance,while the governance environmental protection investment has a masking effect.Finally,this paper proposes countermeasures based on the empirical analysis results.The government should increase government subsidy policy support,increase the proportion of environmental government subsidies,and establish a government-company joint government subsidy monitoring mechanism to give full play to the role of government subsidies in promoting environmental protection investment and financial performance of oil and gas companies.Oil and gas companies should change the concept of environmental protection investment,increase environmental protection investment,and increase the proportion of preventive environmental protection investment in order to better play the mediating effect of oil and gas companies' environmental protection investment between government subsidies and corporate financial performance.