Empirical Analysis Of The Factors Affecting The Performance Of Environmental Protection Listed Companies

With the continuous and rapid development of China’s economy,the acceleration of urbanization and industrialization,environmental pollution is becoming increasingly serious,and the state attaches more and more importance to environmental protection.At present,the performance of listed environmental protection companies is affected by many factors.If we don’t pay attention to it,it will bring the loss of performance or even goodwill.From the results of 2018 annual report disclosure,the performance of Listed Companies in the environmental protection sector is gradually revealed.On the one hand,the strength of ecological environment policy has increased unprecedentedly,the environmental supervision has been further tightened,the battle of pollution prevention and control has been launched in an all-round way,and the policy environment for the development of environmental protection industry has been increasingly improved.On the other hand,affected by the economic situation,the stock market,relevant policies and their own factors,some listed environmental protection companies have experienced business crisis.Therefore,in the process of business operation,the importance of environmental protection indicators not only has an important impact on the performance improvement,but also affects the improvement of enterprise potential and the maintenance of social reputation.At the same time,from the perspective of the overall operation,take 2018 as an example,the overall performance of the environmental protection sector in 2018 was poor,mainly because financial deleveraging made financing difficult and expensive,and the increase of financing cost greatly increased financial expenses.Therefore,more attention should be paid to the control of environmental protection indicators.Therefore,in the process of business operation,the attention to environmental protection indicators will not only have an important impact on the improvement of performance,but also affect the improvement of enterprise potential and the maintenance of social reputation.The distribution and explanation of performance factors are worthy of our study.This paper takes 100 environmental protection listed companies of a and H shares as the research object,and the research contents are as follows:Chapter 1,introduction.This paper mainly introduces the research background,research significance,research content and framework,research methods,innovation points and shortcomings.Chapter 2,literature review.It mainly combs the research focus and conclusions of scholars at home and abroad.Foreign scholars focus on the driving factors of the development of environmental protection industry and the importance of environmental protection factors.Domestic scholars focus on the influencing factors of the performance growth of Listed Companies in the environmental protection industry in China,the profitability of Listed Companies in the environmental protection industry and its influencing factors,the development status of the environmental protection industry and its influencing factors.Chapter 3,related concepts and theoretical basis.The theoretical basis includes business performance theory,principal component analysis model,regression model theory and so on.Chapter 4,analysis of the current situation of environmental protection listed companies.It mainly analyzes the business environment of environmental protection industry.In terms of operating environment,it mainly introduces the macro level environment,industry level environment,environmental protection listed company level environment and secondary market level environment.Chapter 5,index selection and research hypothesis.Put forward the source of indicators and research hypothesis before empirical analysis.Chapter 6,empirical analysis of principal component matrix model.Using the matrix model,using the principal component method to find the public factors,through the correlation test,the stability test,the total variance interpretation,the rotating factor load matrix and other steps,extracted six kinds of principal component indicators: the growth rate of net profit,the number of institutional shares,the implementation rate of the national strategy for environmental protection,the treatment rate of general solid waste,the treatment rate of hazardous waste and the maximum carbon emission rate.In Chapter 7,multiple linear model regression analysis of panel fixation effect.From many factors,select the most significant factors to build regression model to do empirical research.Through the unit root test and Granger causality test,it is verified that the growth rate of net profit,the implementation rate of national strategy for environmental protection of the number of institutional shares,the treatment rate of general solid waste,the treatment rate of hazardous waste,the maximum carbon emission rate and the number of institutional shares have a very significant impact on the return on net assets.Chapter 8,conclusion and suggestion.The empirical results show that the correlation coefficient between the six main components and the dependent variable return on net assets is 0.95,0.62,1.21,and-1.64,respectively.It can be seen that the explanation strength of the six main component indicators to the dependent variable return on net assets is from high to the bottom,and the order is that the maximum carbon emission rate,hazardous waste treatment rate,national strategy implementation rate of environmental protection,number of institutional shares,general solid waste treatment rate and net profit growth rate have significant impact on the return on net assets.Finally,policy suggestions and research prospects are put forward.