Research On The Impact Of Environmental Regulation On Enterprise Performance

In recent years,under the guidance of Xi Jinping’s idea of ecological civilization,the ecological environment quality of our country has been continuously improved.In order to consolidate the achievements of environmental protection and further promote the battle of pollution control,the government has constantly updated and improved its environmental policies and increased the punishment of environmental violations.As an environmental regulation policy,the environmental protection law(the new environmental protection law)implemented on January 1,2015 provides a strong guarantee for environmental protection and ecological civilization construction from the legal level.Among them,the regulations such as"continuous punishment on a daily basis" and "administrative detention" significantly increase the cost of environmental violations,Undoubtedly,it will have an impact on the production and operation of enterprises,especially those with heavy pollution.Research on the relationship between environmental regulation and enterprise performance has become a hot topic in practice and academia,but whether environmental regulation improves enterprise performance and whether technological innovation plays a mediating role in it has not yet formed a unified conclusion.Therefore,this paper wants to take the new environmental protection law as a specific environmental regulation policy as a starting point to explore the effect and mechanism of environmental regulation on enterprise performance.On the basis of literature review and related theoretical elaboration,this paper puts forward research hypotheses from three aspects:the time effect of policy effect,the influencing factors of policy effect,and the intermediary effect of technological innovation,Then,we use the propensity score matching double difference method(PSM-DID)and the mediating effect test model to test the impact of the external impact of the new environmental protection law on enterprise performance,and whether technological innovation plays a mediating role in it.The results show that:in the long run,the implementation of the new environmental protection law will significantly promote the improvement of enterprise performance,and technological innovation plays a partial intermediary role in the relationship between them.Furthermore,this paper analyzes whether there are differences in the impact of environmental regulation policies on the performance of enterprises with different property rights and different industries,and finds that:in terms of property rights,environmental regulation has a significant impact on the performance of state-owned enterprises and non-state-owned enterprises,but the impact direction is different,and there is a negative correlation between the performance of state-owned enterprises and environmental regulation,This may be because state-owned enterprises follow more environmental regulation policies;In terms of industry,different industries belonging to heavy pollution have different responses to the same environmental regulation policy.In general,the implementation of the new environmental protection law can promote environmental protection and economic development to achieve a "win-win" situation.The theoretical significance of this paper is as follows:taking specific policies as the starting point,it can avoid the problem of long impact chain caused by using medium and macro data to measure environmental regulation in existing literature,and capture the real mechanism more directly;Using the new environmental protection law as an external shock event to measure environmental regulation can enrich the research literature of policy test using PSM-DID model.The practical significance of this paper:it is found that environmental regulation can promote the performance of enterprises in the long run,which can provide theoretical support for the government to implement strict environmental regulation policies,and also provide theoretical basis for enterprises to actively adjust their business behavior to adapt to environmental policies;It is found that the nature of property rights and industries will affect the effect of environmental regulation policies.This conclusion can provide the basis for the government to formulate targeted environmental policies.