Environmental Protection Industry Policy Support,political Connection And Corporate Environmental Protection Investment

With the reform and opening up,China’s economy has changed from an agricultural economy to an industrial economy by degrees.China’s economic development and people’s living standards have improved rapidly,but it has brought about serious environmental pollution problems,too.As the main part of social environmental governance,enterprises are important to protecting environment actively.However,because of the higher private costs of environmental governance,Private gains may not be fully compensated,There is insufficient motivation for enterprises to take the initiative to carry out environmental governance.State intervention is needed.Environmental protection industrial policy,as an important means of state intervention,gives preferential government resources to enterprises in supporting industries through government subsidies,bank credit,tax concessions and other auxiliary tools,and releases favorable signals to the outside world to attract investors to invest and promote enterprises to invest in environmental protection.In the meantime,political connection is a special and close relationship between enterprises and the government.In view of the resource effect and the social responsibility of protecting environmental,the existence of political connection will further strengthen the promotion effect of environmental protection industrial policies on environmental protection investment of enterprises in the industry.In this context,this paper studies the above issues as follows:The first portion presents the research background and meaning,research ideas and framework,research technique and innovations of this paper;The second portion presents the relevant research on industrial policies and environmental protection investment of enterprises and makes a summary and comment.The third part starts from the institutional background of industrial policy and the basic theory that affects the environmental protection investment of enterprises.This paper analyzes the relationship between policy support of environmental protection industry and environmental protection investment of enterprises.On this basis,starting from the special attribute of whether enterprises have political connection,it analyzes the relationship between policy support of environmental protection industry,political connection and environmental protection investment of enterprises,and thus proposes two research hypotheses of this paper.The fourth portion explains the research design of this article.The fifth part tests the hypothesis,reports and analyzes the empirical results of environmental protection industry policy support and enterprise environmental protection investment,as well as the empirical results of the regulatory effect of political connection.After that,the robustness test of the research conclusion of the full text is performed by using the methods of propensity score matching,eliminating samples of special years,replacing indexes,etc.The sixth part further analyzes the mechanism of environmental protection industrial policies affecting environmental protection investment of enterprises.The seventh part presents the analysis conclusion,policy recommendations and defects of this article.The main conclusions of this paper are following:First,provincial environmental protection industrial policy support will promote local enterprises to invest in environmental protection,specifically,compared with enterprises not affected by industrial policies,enterprises affected by industrial policies have a larger scale of environmental protection investment;Second,political connection has a regulating effect on the relationship between environmental protection industrial policy support and environmental protection investment of enterprises.Specifically,compared with enterprises without political connection,environmental protection industrial policy support plays a more significant role in promoting environmental protection investment of enterprises with political connection.Third,the implementation of the environmental protection industry policy has raised the holding level of government subsidies and bank loans for enterprises,reduced the financing costs of enterprises,provided more sufficient funds and promoted enterprises to make environmental protection investments.Fourth,the support of environmental protection industry policies will broaden the financing channels for enterprises’ environmental protection investment,make it easier for enterprises to obtain the funds needed for environmental protection investment,and reduce the dependence of enterprises’ environmental protection investment on cash.The innovation of this paper mainly includes something following:First,this paper takes the provincial government-supported environmental protection industrial policy as the explanatory variable.At present,that research on environmental protection industrial policy and environmental protection investment of enterprises in the exist studies is on the basis of the analysis of the contents of the national"five-year plan" document,In view of the imbalance of environmental governance in various regions of our country,the environmental protection industrial policies issued by the state do not necessarily conform to the actual situation in the regions.At the same time,the provincial industrial policies often clearly indicate specific support means,thus enabling us to further explore the impact of macro industrial policies on micro enterprise investment.Therefore,this paper manually collects the supporting environmental protection industrial policies of the provincial governments in our country,and conducts research based on the supporting environmental protection industrial policies of the provincial governments in our country to explore its impact and mechanism on the environmental protection investment of local enterprises.Secondly,this paper builds the theoretical framework of environmental protection industrial policies affecting environmental protection investment of enterprises and the transmission mechanism based on government subsidies,bank loans and cash holdings,and verifies the impact effect and mechanism based on the data of A-share non-financial listed corporations between 2011 and 2017,expanding the existing research on the economic consequences of industrial policies.