| The GDP of China has exceeded 90 trillion yuan for the first time in 2018,with an annual growth rate of 6.6 percent.China’s economic growth contributed nearly 30 percent to the economic growth of the whole word,surpassing the United States as the world’s largest contributor.At the same time China is attaching more and more importance to environmental issues.In January 2015,the "strictest environmental protection law in history" was fully implemented across the country.Subsequently,the state continuously introduced and revised relevant environmental laws to identify the responsibility for environmental pollution and guide the green development of the economy.In addition,the state has also introduced administrative detention measures,public interest litigation and other aspects to strengthen the punishment of environmental problems.The attitude of government towards environmental protection is bound to be transmitted to the capital market,causing the reaction of investors.Heavy polluting enterprises have been subject to the government and society’s key supervision for a long time due to environmental problems,so when the signal of strengthened environmental regulation is transmitted to the capital market,will it affect the stock price crash risk of such enterprises? At the same time,in order to cope with environmental regulations,heavy polluting enterprises will make corresponding investment in environmental protection to reduce illegal risks.From the perspective of the object of capital use,the environmental protection behavior of enterprises can be divided into investment prevention type and cost clearing type.The former is for the prevention of environmental pollution before the occurrence of transformation,such as non-metal products enterprises occurred in the waste gas desulfurization out of stock transformation,waste heat power generation projects.The latter is the pollution control expenditure after the occurrence of environmental pollution,such as the mine recovery fee incurred by mining enterprises,water and mineral resources compensation fee.Can enterprises’ different investment strategies of environmental protection mitigate the impact of environmental regulation on the risk of stock price crash? In order to solve these problems,this paper explores the relationship between environmental regulation and the risk of stock price collapse from the two aspects of legislation and law enforcement,and integrates the environmental protection investment strategy into the research framework,so as to further study the impact of different environmental protection investment behaviors on the relationship.Based on the samples of listed companies in a-share heavy pollution industries from 2012 to 2018,the empirical test results are as follows:(1)There is a significant positive correlation between environmental regulation at the level of law enforcement and the risk of stock price crash,while there is no significant correlation between environmental regulation at the level of legislation and the risk of stock price crash.(2)The positive correlation between law enforcement level and the risk of stock price crash is more significant in areas with low pollution degree,regions with higher economic development degree and private enterprises.(3)The greater the investment in preventative environmental protection,the weaker the positive correlation between environmental regulation at the level of law enforcement and the risk of stock price crash,while the investment in cost-clearing environmental protection does not have such negative regulating effect.(4)The negative moderating effect of preventive investment on the positive correlation between environmental regulation and the risk of stock price crash is more significant in heavily polluted areas,regions with higher economic development and private enterprises.The main innovations and contributions of this paper are as follows :(1)This paper takes the regional environmental regulation into the research scope,and discusses the effect of environmental regulation on the capital market from the perspective of legislation and law enforcement at the micro level of enterprise stock price crash risk.It has expanded the perspective of relevant research fields and verified the economic consequences of different environmental regulation.(2)This paper distinguishes different types of environmental protection investment behaviors of enterprises,divides them into investment prevention type of environmental protection investment and expense clearing type of environmental protection investment according to the object of capital use,and studies the regulatory effect of different environmental protection investment on environmental regulation and stock price crash risk.This paper tries to solve the current situation that the concept of enterprise environmental protection investment is not clear and generalized.(3)This paper comprehensively considers the influence of specific situations such as regional pollution degree,regional economic development degree and property right nature,and comprehensively analyzes the relationship between environmental regulation,enterprise environmental protection investment strategy and stock price crash risk.It provides a direct empirical basis for better playing the joint role of economic environment,natural environment and regulatory environment,and also provides new ideas for follow-up research.Due to the author’s limited theoretical level and research ability,there are still many deficiencies in the text,mainly including:(1)There is certain subjectivity in the classification of environmental regulation and enterprise environmental protection investment.Academic circles at present for environmental regulation and classification of corporate environmental protection input has not yet formed a unified point of view.The classification of this paper standards has certain subjective color and its objective remains to be verified for the later research.(2)Environmental regulation data is not specific.This paper uses relevant data at the provincial level to measure the intensity of environmental regulation,which only examines 31 provinces.Enterprises in the same province will also be subject to different environmental regulations due to their location in the city,region and other factors.Due to the limited time and energy of the author,the data was not further refined,and was not detailed enough.(3)Research samples have limitations.Since the relevant data of enterprises’ environmental protection investment are collected and sorted by hand,the author selects listed enterprises of a-share heavy pollution industry from 2012 to 2018 as the research sample for consideration of time.The year of the sample is a little short,and it is limited to heavy pollution industries.The scope of the industry is not comprehensive enough,and there are certain limitations. |
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