The Impact Of Green Certification On Enterprise Performance

With the prominent environmental pollution problems in China and the improvement of consumers’ awareness of environmental protection in recent years,more and more Chinese enterprises have applied for green certification to strengthen the production process.On the one hand,green certification increases the transparency of product quality information through signal display functions,and transmits green production information to the public to alleviate information asymmetry between enterprises and consumers.On the other hand,Green Certification builds a corporate environmentally friendly reputation through reputation premiums,attracting more environmentally conscious consumers and gaining greater market share.The importance of green certification has attracted widespread attention from domestic and foreign companies and the public,and has also raised some corporate performance issues.As a voluntary environmental regulation method,the effect of green certification on corporate performance and the effectiveness of corporate pollution are affected and constrained by a number of factors.This paper attempts to explore the relationship between green certification and corporate economic performance and environmental performance from the "innovation compensation effect" of Porter’s hypothesis.This paper first analyzes the impact mechanism of green certification on corporate performance,and sorts out the intermediary role of innovation compensation effect in the relationship between green certification and economic performance,and the intermediary role between green certification and corporate environmental performance.By constructing the market equilibrium model in the presence or absence of green certification,the paper analyzes the impact of green certification on corporate profitability and pollution control.This paper makes an empirical analysis using the panel data of 67020 highly polluting industrial enterprises in China from 2007 to 2010,and conducts a special mediation effect test on the impact of green certification on corporate performance.The empirical results show that:First,green certification has a significant role in promoting the economic performance of enterprises.Green certification has improved the sales profit rate and return on assets of enterprises.The effect of green certification on the economic performance of enterprises is quite different between different regions.Compared with enterprises in the central and western regions,the green certification of enterprises in the eastern region has a more significant effect on economic performance.Second,green certification has a significant improvement effect on corporate environmental performance.Green certification can significantly reduce the emission of corporate pollutants.This lifting effect has a certain correlation with the geographical location and corporate nature of the enterprise.The impact of green certification on environmental performance is more significant in the western region and state-owned enterprises.Third,the mediation effect test of the green certification mechanism shows that total factor productivity plays a mediating role between green certification and corporate performance.Green certification mainly affects the economic performance and environmental performance of enterprises through innovative compensation effects.The mediating role of improving total factor productivity achieves a win-win situation for economic performance and environmental performance.Finally,combined with the theoretical model and empirical test,this paper proposed policy recommendations: encourage enterprises to play the subjective initiative of enterprises,actively apply for green certification;standardize the certification market,improve the regulatory level of the certification market;improve the green certification diffusion rate of different regions according to the actual development of different regions.