Environmental Regulations On Performance Of Heavily Polluting Enterprises Mechanism

Since the reform and opening up policy, China’s economy has been developed rapidly. But in the meanwhile, the environmental pollution is brought by the spectacular growth over the past three decades also increasingly. Therefore, the environmental issues begin to catch more attention from society. In recent year, Chinese government begins to establish relevant policy and regulation to provide better protection for the environment. These environmental policies and regulations become one of the most important factors that affect enterprise operation activities, particular in some polluting industries and enterprises with serious pollution. The impact of Environmental regulation to the performance and behavior of corporate begin to gets a lot of attention from domestic and overseas scholars. Especially, how do the different types of environmental regulations impact the business behavior and business performance and the impact has become the research focus. Therefore, based on the actual situation in China, the impact of environmental regulations on business performance in heavy pollution enterprises has important theoretical and practical significance.This paper attempts to based on the SCP framework, start with the theoretical view to analysis the environmental regulation impact on Market Structure, Corporate Behavior and Corporate Performance as well as the transmission mechanism to constitute a new ESCP analytical framework. Then, summarizing the domestic and foreign research results, by using the structural equation models method as approach to establish model proposed research hypotheses. This research focus on heavy pollution enterprise as the research object, through a questionnaire to collect relevant data then through SPSS19.0 and AMOS17.0 statistical analysis tools to using fitting analysis to analyzed the data gathered from survey based on the designed model to verify the proposed research hypothesesThe empirical results validate that the market incentive-based environmental regulation and voluntary types of environmental regulation have a significant impact on market structure, corporate behavior and corporate performance; command and control environmental regulations only have impact on market structure and corporate behavior. Moreover, there is no significant impact on the relationship between market structure, corporate environmental behavior and business performance. Finally, according to the empirical results, the research has put forward suggestions and recommendations to the government, enterprises and society on coping environmental regulation and further improvement, in order to provide reference for China’s environmental protection problems.