The Impact Of Environmental Regulation On Corporate Net Profit

Since the1980s, the environmental issues have got more and more attention around theworld.people have paid increasing emphasis on environmental issues, and gradually realizethe impact of the deterioration of the global ecological environment on the quality of humanlife, as well as the world pose a serious threat to sustainable development. In this regard,environmental organizations around the world began to appeal that human beings shouldstrengthen the protection of the environment. In China, energy conservation is included in the"Eleventh Five-Year Plan"since2006,"green" is increasingly put on the development agenda,various policies and regulations have been introduced to enforce enterprise to work on therestructuring of environmental protection.The public has become increasingly concernedabout the company’s environmental behavior, under various pressures from society andgovernment, enterprises have to adopt environmental regulations. For the enterprise whosetarget is "maximize the benefits",a sudden increase in the additional costs of environmentalprotection will inevitably incur the phenomenon of conflict.However, with the promulgationand implementation of various environmental laws and regulations, the corporateenvironmental behavior have been given a certain degree of support by state, which sparked acontroversy about environmental regulation and corporate financial performance, aboutwhether the impact of environmental regulation on corporate financial performance isnegative or positive, this debate is inconclusive so far. In order to get a conclusion about thisdebate. the paper will study the impact on business performance from environmentalregulation in an individual’s point of view, specialized study the effects of different types ofenvironmental regulation effect on corporate financial performance, in order to study how toachieve a "win-win" state, and then achieve the sustainable development of environment andcorporate economy.The main contents are as follows:first of all, It will introduce the background of currentsituation to supervise the environment. According to actual situation of the environmentalcontrol and the quantify degree of implementation, it selects "Yuguang Gold&Lead" as thecase of this article; Second,it will review and summarize the research which about the affectfinancial performance received form environmental regulation, and then,on the basis of it,combineing with the actual situation of the case, this article will select environme ntal controlindicators and financial performance indicators of itself; third, after doing detailed analysis inthe company of Yuguang Gold&Lead actual implementation of environmental regulationsand the impact on the company’s financial performance, the conclusions are got as following:Different types of environmental regulation tools has different effects on the financialperformance,furter,some environmental regulations’ impact on corporate financial performance exist lag and continuity, and the different types of environmental regulation canbe used in combination to achieve better results; Finally, some relevant recommendations willbe put forward based on case studies.