The Research On The Relationship Between Environmental Risk Management And Financing Cost Of A Co., LTD

As important participant of market economy,enterprises are profit-oriented organization,the starting point and destination business is profitable.But as the time goes on,environmental pollution, shortage of resources and many environmental problems began to emerge in the economic activities.In addition to national environmental laws and regulations continue to improve and refine.The environmental risk of enterprises is gradually increased. With the deepening understanding of the environmental protection consciousness,Enterprise managers began to use environmental risk management as a competitive advantage.through establishing a good environmental risk management system to improve their financing cost,create more value for the enterprise.In this paper, the environmental regulation theory and the comprehensive risk management theory, the cost of capital theory as the theory foundation of the research,Analyze and summarize the research status domestic and foreign scholars, starting from the measurement method of environmental risk and The relationship between environmental risk and financing cost.Taking A Co.,Ltd as an example,using qualitative and quantitative method to calculate the level of environmental risk management of A Co.,Ltd.To evaluate the environmental risk management company in recent 5 years,discuss the effect of environmental risk management.Then compare cost of debt capital and equity capital cost with environmental risk management in recent 5 years,in order to get the correlation between the environmental risk management and the cost of debt capital and equity capital cost.using cost of equity capital and debt capital to calculate the cost of financing.finally analysis the relationship between environmental risk management and the enterprise financing costThrough the research of A Co.,Ltd in this paper.We find that improved environmental risk management can reduce the cost of enterprise financing,which means Through the effective improvement of the environmental risk management can effectively optimize the enterprise the cost of debt capital and equity capital cost,this is an important role on the stability of the comprehensive financing cost.Finally, summarize what is worth learning in A Co.,Ltd's environmental risk management and its shortage.According to the shortages to put forward the corresponding improvement opinions which has the certain reference value to improve the risk management system for enterprise.