The Impact Of China's Environmental Policies On The Financial Performance Of Polluting And Environmental Protection Listed Companies

Since the 18 th National Congress of the Communist Party of China,environmental protection issues have been placed in a prominent position in the ruling work.A series of environmental protection related policies have been introduced,which have adjusted the relationship between economy and environmental protection and affected every role in the economy.We "want Gold Mountain&Silver Mountain,as well as Clean Water&Green Mountain”.In the 1990 s,there were studies on the relationship between economic development and environmental protection.Porter pointed out that “properly designed environmental protection mechanisms can encourage technological innovation and enhance competitiveness”(Porter Hypothesis).If PH makes sense in China,it means that we can achieve a win-win situation for both the economy and the environment.I explore the impact of environmental policy from the perspective of ROA.All A-share listed companies are divided into three categories: polluting ones,environmental protection ones,and others.The first two categories are sensitive to environmental protection policies.Other companies are used as benchmarks to messure environmental policies' relative impact on polluting companies during the period 2013-2016.Using DID,I measured the treatment effect of environmental protection policies on polluting companies and environmental protection companies.The result shows that environmental protection policies have a significant positive effect on polluting enterprises' ROA,which means that environmental protection policies can increase their profitability.The result support PH.In addition,the treatment effect on environmental protection companies is not significant.