Research On The Impact Of Corporate Environmental Protection Investment On Economic And Environmental Performance

With the rapid development of China’s economy,environmental problems have become increasingly serious.How to do a good job in environmental protection while developing the economy has become a hot issue concerned by the society.As the micro subject of economic,enterprises have an increasing influence on society and play a vital role in environmental protection.Corporations’ attitude towards environmental protection directly affects the level of social environmental protection.In order to explore whether enterprises can get economic benefits from environmental investment and how does the investment in environmental protection affect the environment,this paper researches the impact of the sustainable effort on economic and environmental performance.From the perspective of Stakeholder Theory,Resource Based View and the Theory of Organizational Legitimacy,this paper analyzes the impact of enterprise environmental investment on its economic performance and environmental performance,and judges whether the enterprise has the willingness to invest on the environment.We collect the data of china’s listed company from 2014 to 2016 and analysis the data via Multiple linear regression.We divide enterprises’ environmental investment into two categories: one is the enterprise itself to make environmental investment,the other is the enterprise to require the supplier to fulfill environmental protection responsibility through the supplier guidelines.The former is the enterprise itself using capital for environmental protection,the latter is the enterprise managing the supply chain to require the supplier to protect the environmentThe empirical analysis shows that corporation’s environmental investment have a negative effect on profitability and debt-paying ability,and a positive influence on environmental performance.This phenomenon is particularly obvious in heavy polluting industries.In response to this conclusion,the paper puts forward suggestions for social groups such as the government,the media and consumers.The supervisory subjects can improve the social environment by forcing enterprises to invest more on environmental protection.Our paper also takes the sustainable supply chain management into consideration.The manufacturer manages its suppliers by supplier code of conduct,and the supplier complied with supplier code need to make sustainable investment.Using multivariable linear regression model,we find that supplier code of conduct have a positive effect on firm’s environmental and economic performance,and do not have any negative effect on its solvency.It means that the manufacturer have willingness to take green supply chain management,which can help the enterprise to save energy and Reduce pollutant emissions.According to this conclusion,my paper gives suggestions from the perspectives of government,media and consumers respectively.