The Impact Of Financing Constraints On The Corporation Environmental Protection Investment

China has attached great importance to ecological environment protection since the 12 th five-year plan.Our country has put forward several environmental supporting policies and measures,strengthened the construction of environmental protection laws and regulations,and will intensify environmental protection,emissions reduction in the future.The companies which create heavy pollution will be sure facing more environmental constraints and financing constraints at the meantime.From financial perspective,environmental protection investment is similar with other for-profit investment in decision-making and the level of financial management,both of which are directly affected by the difficulty and the cost of financing.The paper takes the listed companies of heavy pollution industries as the research sample.Firstly,we using ordered logit regression model to construct a comprehensive index of financing constraint,then put up an empirical model to analyze the effect of financing constraints on corporate environmental protection investment,based on the panel data in 2013-2015.In reference on existing research results,considering influences from external environmental as well as corporate governance,we make such factors as control variables in model.Through several virtual variables,we can find out the different influences of financing constraints on corporate environmental protection investment between companies,in aspects of industry,property rights and firm size.The conclusions are as followed:Firstly,the degree of financing constraints has an inhibitory effect on corporation environmental protection investment.When facing more constricted financing constraints,because of internal capital insufficiency and external high financing cost,companies will be likely to reduce further cuts in the scale of investment in environmental protection.Secondly,for companies differ in industry,property rights and size,the financing constraints have different degree of influences in environmental protection investment.For State-owned enterprises,this part of investment is more sensitive to financing constraints.While the environmental protection investment in other private firms and foreign capital enterprises,to some extent,is crowding out other for-profit expenditure.Thirdly,there are obvious differences in environmental protection investment performance between companies.From the industry attributes,we can see heavy industry enterprises invest more in environmental protection than the light.State-owned enterprises have greater scale environmental related investment compared to other property rights of enterprises.Similarly,such investment in large-scale enterprise is much bigger,but small businesses show stronger motivation in environmental protection as well.