The Key Factors And The Mechanism Of Environmental Regulation On Enterprise Performance

With the expansion of production and consumption, unlimited use of natural resources, human discharges pollutants into the environment at will, leading to the deterioration of the environment constantly. The emergence of the environmental problems has a close relationship with enterprise production and business operation activities, so the pollution especially heavy pollution enterprise is the key regulation object. Take Pigovian tax and coase’s theory of property rights theory as the foundation, the world’s environmental regulation has experienced three different stages of development; Fundamental, environment problem is still the battle costs and benefits. In recent years, scholars explore the influence of environmental regulation to regulate corporate performance from different angles, but there are still many controversial. In addition, environmental regulation as a new variable affecting enterprise development, enterprise management authorities need to clear up how the environmental regulation policies effect enterprises and key factors which conduct the enterprise, it would be difficult to cope with the effects of the regulation brings to the enterprise. Therefore, combining with the reality in our country, reserching the key factors and mechanism of action which environmental regulation influence the business performance.Exploring theory and practical significance of which environmental regulation through what way impact enterprise performance.Firstly, this article theoretically Combs and summarizes existing researches which is about how environmental regulation affect enterprise performnce and what are the key factors the impact enterprise performance. Then, put forward the research hypothesis and build the research model of this study. On this basis, this article take the heavy pollution enterprises as the research object, Using the likert seventh cale to measure the research variables,eventually selecting 173 valid questionnaires to do the empirical study. Then, by using the statistical analysis tools SPSS 19.0 and AMOS 17.0 to build the model and the data collected by fitting analysis, and verify the hypothesis which is put forward above. Results show that:First, management of cognition,environmental management,the cost of competitive advantage and differentiated competitive advantage are the key factors of environmental regulation affecting enterprise performance; Second, different types of environmental regulation have different influences on the management of cognitive and enterprise environment management; Third, although the environmental management will increase the cost burden of enterprise which has directly negative impact on corporate performance, But enterprises by strengthening the environmental management, actively put green production into practice, through green innovation to improve their cost and differentiation competitive advantage, eventually has a positive impact on enterprise performance.Finally, based on the theoretical research and empirical analysis, and puts forward countermeasures and suggestions to promote the development of environmental protection and economic coordination, to realize the double harvest of our environmental protection and economy.