Empirical Research About The Insurance Support Of Circular Economy Enterprises Development In Western Rengion

Along with the problem of environmental pollution,shortage of resources are becoming more and more serious in our country,the concept of circular economy is rapid heating up,from theory research to practice of execution,Circular economy has become an important national policy of sustainable development.Especially in the western region of China,many cities develop local economy at the expense of the environment,resulting in serious environmental pollution,which makes the development of circular economy has become an inevitable choice.Due to the characteristics of the high investment and money demand of circular economy industry,make it has a strong demand for financial capital.As one of the three financial systems and special financial enterprise,insurance has become an important force in capital market,whose function of risk management can provide economic compensation for possible risk and accident in the process of new technology research and development of circular economy enterprises,and thus it becomes an important risk transfer means to develop circular economy.At the same time,insurance funds are long-term and extensive,which can avoid the mismatch problem that object of circular economy and traditional finance put the main direction and term,and can raise more social funds for the development of circular economy.Therefore,the research on insurance support for the development of circular economy in the western region has positive theoretical and practical significance.The high pollution,high energy consumption listed corporations of circular economy in western China as the research sample from 2006 to 2014,use descriptive statistics,correlation analysis,and statistical model to empirically analysis.Firstly,the property insurance as independent variable,ROE and Tobin Q as the dependent variables,using WLS method,the paper research found:using the property insurance for risk transfer cannot improve enterprise's financial performance and market value,but it can significantly improve the financial performance of non state-owned enterprises.Furthermore,the stronger financial background of independent directors,the greater use of property insurance on the company's financial performance and market value,but only in non-state-owned enterprises.The number of executives' economic background of profession or job is more,the more can improve the enterprise's financial performance,but to promote market value exists only in non-state-owned enterprises.Next,controlling Tobin Q,ROE and liquidity variables,using OLS and dynamic panel model,the paper research found:compared with non-insurance-Industrial integration,insurance-Industrial integration can relieve listed companies' financial constraint by establish good relations of corporation.And when the financial development and insurance development were at low level,the effects are more pronounced.Finally,according to the research results,the paper proposes some advices and limitations:encourage recycling economy enterprises to use risk transfer of-property insurance,strengthen the system construction of the property insurance market,strengthen financial innovation,establish a perfect insurance-Industrial integration of platform and the limitations of such suggestions.