The Empirical Study On The Relationship Between Environmental Performance And Financial Performance Of Listed Companies Of Heavy Pollution Industry

With the pace of modernization of science and technology and economic globalization,Economic development poses new challenge to environment. How to form mechanismbetween environmental performance and financial performance of listed companies of heavypollution industry is a realistic problem to be solved currently in the process of economicdevelopment and building a harmonious society in China. Discussing heavy pollution listedcompany environmental and financial performance is very important, which need to beestablished in value style environmental affairs, also need to find environmental problemharmony analysis. Nowadays, the key problem we facing is not the debate about “whether itpays to green”and “when it pays to be green”，more worthy “should be how to afforest”.The present paper firstly analyzed the relationship between environmental performanceand financial performance, and then arranged theoretical and empirical researching paper inthe area of them, finally, built hypothesis and model in the basis of theoretical analysis andpaper summary. In order to confirm hypothesis and model, this paper studied16categorieslisted companies of heavy pollution industry under supervision of environmental agency,collected listed companies data from2009to2012, using descriptive cohabitation, correlationanalysis, Pool data regression analysis, panel data random effects model regression analysis,and did robustness test for hypothesis in this paper. Results showed that geographic positionhave positive correlation effect on environmental performance; proportion of state-ownedshares, implement of the environmental strategy and financial performance have positive correlation effect on company environmental performance, but not remarkable; company sizehave negative correlation effect on environmental performance, also not remarkable;environmental performance have positive correlation effect on current period, first-laggedand second-lagged financial performance under panel data analysis, also not remarkable.According to conclusion, this paper offered a proposal in the degree of enterprise,government and society: enterprise should focus on build internal environmental governancemechanism and environmental responsibility targeting mechanism; government shouldstrengthen the supervision of state-owned shares, improve ISO14001environmentmanagement system certification and environment protection motivation mechanism; ChinaSecurities Regulatory Commission(CSRC), China Bank Regulatory Commission(CBRC) andenvironmental protection administration should improve listed enterprise environmentalsupervision, environmental information disclosure and consummate environmental lendingpolicies.