Enterprise Strategy,Internal Control And Environmental Protection Investment

Since the 1970s,in order to catch up with the pace of the world,China has vigorously developed its economy in a way of high energy consumption and high output.Although it has achieved remarkable success in economic development,it has brought a series of environmental pollution problems,which are common problems faced by every country in the history of economic development.Since the 21st century,China has been emphasizing environmental issues from top to bottom,advocating the theory of sustainable development,requiring the government to strengthen environmental control,enterprises to pay attention to environmental governance,and the public to enhance environmental awareness.Under the background of such times,the realization of short-term economic goals of enterprises seems to be in contradiction with the investment in environmental protection,while the strategy of long-term sustainable development seems to be in conformity with the investment in environmental protection.In this paper,under the condition of short-term contradiction and long-term adaptation,the relationship among the progress of enterprise strategy,internal control and investment in environmental protection is discussed,and the radical effect of internal control on enterprise strategy is also studied The impact of the relationship between degree and environmental protection investmentCorporate strategy has a significant impact on the investment decision-making behavior of the company.According to the rule of thumb,when the strategy matches the business decision-making behavior,the enterprise will often succeed.On the contrary,when the strategy deviates from the business decision-making behavior,the enterprise will often fail Therefore,from the perspective of legitimacy theory and resource allocation theory,and considering the impact of internal control on corporate financial behavior and strategy implementation,this paper studies the relationship between strategy incentive schedule and environmental protection investment,the relationship between internal control and environmental protection investment,and the impact of internal control on the relationship between strategy incentive schedule and environmental protection investment for the government and enterprises in the environment It provides a theoretical basis for environmental protection.In this paper,firstly,the enterprise strategy,internal control and environmental protection investment are analyzed.On the one hand,based on the legitimacy theory and resource allocation theory,this paper analyzes the impact of strategy incentive schedule on environmental protection investment;on the other hand,based on the strategy management theory,it analyzes the impact of internal control on environmental protection investment;further,it discusses the impact of internal control on Enterprise strategy radicality and the relationship between environmental protection investment.On this basis,based on the data of Sample Firms in 2012-2017,this paper makes an empirical test on the strategy incentive progress,internal control and environmental protection investment of enterprises.The empirical results show that:(1)the more radical the enterprise strategy is,the lower the level of environmental protection investment;(2)the internal control has no direct and significant impact on environmental protection investment;(3)the internal control plays a promoting role in the relationship between the enterprise strategy incentive progress and environmental protection investment.The innovations of this paper are as follows:(1)to put corporate strategy and internal control into the same research framework,to a certain extent,it explains the relationship between corporate strategy incentive schedule and environmental protection investment,further proves the impact of corporate strategy on corporate financial behavior,and is the supplement and improvement of the existing research in this sector.(2)This paper studies the impact of internal control on the strategy incentive progress and environmental protection investment of an enterprise,and explains to a certain extent the role of internal control in promoting the implementation of an enterprise’s development strategy.