| In April 2016,General Secretary Xi Jinping said “Only the loving wealth is really meaningful,enterprise which perform social responsibility positively is the most competitive and vitality enterprise".This is a more clear description to the social responsibility concept that introduced in Company law of China in 2006.Since then corporate social responsibility is improved to an unprecedented political level.As a pioneer in fulfilling social responsibility in China,Yunnan Aluminium Co.,Ltd.has been continuously investing in environmental protection since 2000,and has been awarded the titles of "national environment-friendly enterprise" and "national model enterprise for low carbon ",which can be used as the example for other enterprises to learn from.This reflects that the company is a representative enterprise with good performance of environmental protection responsibility in China,which is worthy to study and exploration in depth.Based on the existing research results and the public information of environmental protection investment of Yunnan Aluminium Co.,Ltd.,this paper takes “environmental protection investment in Yunnan Aluminium Co.,Ltd.and performance change" as the core research content,and mainly answers three sub-questions :(1)Whether the environmental protection investment improves the short-term marketing and accounting performance of Yunnan Aluminium Co.,Ltd.;(2)How the environmental protection investment impact the performance of Yunnan Aluminium Co.,Ltd.;(3)Considering the contribution of environmental protection investment to the overall welfare of the society,what is the impact of environmental protection investment on enterprise performance?Firstly,this paper dispossal the data of environmental investment of Yunnan Aluminium Co.,Ltd.as the basis for subsequent analysis.Secondly,relying on the event analysis method,this paper analyzes and calculates the stock price changes before and after the corporate social responsibility disclosure,and evaluates the impact of environmental protection investment information disclosure on the stock through the excess return index,so as to determine the impact of environmental protection investment on the market performance of the company.Then,through the analysis of accounting indicators and principal component analysis,we observe the impact of environmental protection investment on the company’s accounting performance.,and the second sub-question is answered by digging into the internal mechanism of the effect of environmental protection investment on Yunnan Aluminium Co.,Ltd.Finally,the influence of environmental protection investment on enterprise performance considering the contribution of environmental protection investment to the overall welfare of the society isanalyzed and the third sub-question is answered.The research conclusion of this paper is as follows :(1)The market response to environmental protection investment information disclosure is not significant enough at the present stage.From the perspective of market response,the environmental protection investment of enterprises cannot improve the value of enterprises.(2)The environmental protection investment made by enterprises to meet the regulatory requirements will not affect the accounting performance of enterprises,but the unnecessary environmental protection investment made to build the enterprise brand will reduce the accounting performance of enterprises.(3)The realization mechanism of the impact of environmental protection investment on the performance of Yunnan Aluminium Co.,Ltd.is as follows: environmental protection investment can improve the sales revenue,labor efficiency,the relationship with the government and reduce the manufacturing cost of the enterprise,but it will also increase the internal and external transaction costs of the enterprise,resulting in the increase of the total operating cost of the enterprise.The ultimate negative impact of the environmental protection investment is caused by the excessive investment brought by the management’s agency problem.(4)Although the continued investment in environmental protection after enterprises meet the regulatory requirements will reduce the financial performance of enterprises,it will increase the overall welfare of the society.Government departments should fully consider the contribution of enterprises to the reduction of total social cost,improve the enterprise value measurement standard,encourage more enterprises to invest in environmental protection,and maximize the total social welfare.The application value of this paper is as follows: on the one hand,it can provide a reference for enterprises that will or are investing in environmental protection,clarify the impact of environmental protection investment on enterprise performance and the transmission mechanism,so as to help enterprises better realize the win-win situation of society and enterprises brought by environmental protection investment;On the other hand,through the opinion "unnecessary environmental inputs while reduces the financial performance of the enterprise,but it will increase the overall social welfare" to provide reference for policy makers,.The improvement of overall social welfare brought by enterprises should be incorporated into the evaluation system of enterprises in a faster and better way to encourage enterprises to actively fulfill their social responsibilities. |
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