Study On The Relationship Between The Enterprise Implementation Of Circular Economy And The Financial Performance

After the industrial civilization, the global economy is growing rapidly. Economic growth is inseparable from the support of the resource, but the carrying capacity of resources also restricts the development of the economy. The traditional model of economic development is based on’high mining, high consumption, high emission, low utilization’ which leads to increasingly serious problem of shortage of resources, environmental pollution and ecological destruction. To ease the contradiction between man and nature, and to achieve the sustainable development of society, the circular economy came into being. Recycling economy development model is based on’low extraction, low consumption, high emission, low utilization’, being able to achieve economic and social benefits of ecological benefit which is a win-win situation. The enterprises, as the main body of the market economy, are to maximize the benefits for objective, rational implementation of circular economy.Firstly, this paper reviews the research profile from home and abroad on the relationship between circular economy performance, evaluation cycle economic performance and financial performance relationship. On this basis, the paper introduces practice situation of the theory of circular economy and circular economy from home and abroad. Then, combining the cycle economy theory, the researchers analyzed the motives of the enterprise implementation of circular economy from both aspects of external and internal factors, and then analyzed the enterprise value movement of the circular economy. They defined corporate impact on the financial performance of the implementation of circular economy, so that the bonds of logic and theoretical assumptions can be built between a circular economy and financial performance. Finally, to verify the correctness of the theory, this paper uses multiple linear regression model to execute the empirical analysis on the data of listed companies of high pollution and high energy consumption.The empirical research proves the positive correlation between enterprise circular enconomic performance and its financial performance,which is basically the author’s theoretical hypothesis.