The Influence Of Corporate Environmental Governance On Enterprise Value

Since the beginning of the 21 st century,with the rapid expansion of China’s industrial scale and the consecutive high GDP growth for many years,environmental pollution problems have become increasingly prominent.The report of the 19 th National Congress of the Communist Party of China highlights the comprehensive summary and key deployment emphatically on the issue of ecological environment protection and ecological civilization construction.However,critical environment problems exist in our country,such as haze and water pollution,and these predicaments have become an evident short-board for China to realize a well-off society in an all-round way.As we all know,enterprise manufacture plays an important role in polluting environment and environmental governance of enterprise will directly affect the whole environmental governance of the society.Therefore,corporate environmental governance is a key to improving environment governance and solving environmental problems.Nevertheless,the majorities of enterprises only pursue the maximization of economic benefits,and believe that environmental governance will increase the cost of enterprises and reduce enterprise profits.The research in this paper will help enterprises realize that active and effective environmental governance can not only improve enterprise value,but also achieve sustainable development.Based on stakeholder theory and sustainable development theory,this paper adopts the method of the combination of literature and case analysis to research the influence factors of enterprise value of company S under the prospective of enterprise environmental governance.Firstly,the common evaluation theories and methods of enterprise value are studies;Secondly,the motivation and influence factors of enterprise environmental governance are analyzed;Further,the adaptive evaluation method of environmental governance for company S is constructed combining the environmental governance evaluation system of listed companies,and it could provide reference for other companies in the same industry.After summarizing those domestic and foreign enterprise value assessment theory and method,our research divide those influence factors of enterprise value into direct factors(profitability)and indirect factors(environmental factor and internal factor).And the external performance of profitability can be measured by financial indictor.The environmental governance of company S is evaluated in this paper based on the cash flow model of enterprise value.Internal performance can be explained by a series of non-financial indicators such as the evaluation of related stakeholders and market share.This work is mainly devoted to exploring the correlation between environmental governance and enterprise value and the effective means of environmental governance for the purpose of establishing the effective evaluation system in our realistic society.Meanwhile,this work will play an important role in deepening understanding of stakeholders about the significance of environmental governance and promoting these enterprises to take the responsibility of protecting environment.Further,this work can provide theoretical and practical basis for promoting ecological environment protection and ecological civilization construction in our country.