The Impact Of Environmental Regulations And Environmental Investment On The Performance Of Chemical Companies

While our country has achieved certain results in economic development in recent years,the contradictions of environmental pollution represented by air pollution have become increasingly prominent.Therefore,our country has paid more and more attention to environmental protection.Since the 18 th National Congress of the Communist Party of China,the implementation of environmental protection regulations has been continuously strengthened.The report of the 19 th National Congress of the Communist Party of China stated that "green water and green mountains are golden mountains and silver mountains",and more emphasis has been placed on the construction of ecological civilization.This thesis has become an important indicator for fighting a tough battle against pollution.Correspondingly,since 2013,China has successively introduced and continuously revised a number of environmental protection regulations related to air pollution control,water pollution control,soil pollution control,environmental protection supervision,etc.,from specific control objectives,penalties,accountability system of government official,etc.All aspects have been comprehensively planned.At the same time,environmental protection inspections and special rectification actions for environmental protection are also frequently carried out.As one of the traditional heavy pollution industries,the chemical industry inevitably causes pollution to the environment during production.Under the increasingly severe environmental protection situation,chemical companies have gradually increased their investment in environmental protection based on their own development,meeting regulatory compliance requirements and social responsibility.In addition,the reform process on the supply side is accelerating,and "carbon peak" and "carbon neutral" have been put on the agenda,and the chemical industry is no exception.The crackdown on environmental protection supervision continues to increase.In the industry,low-cost,low-efficiency,low production technology,insufficient innovation capabilities and other small-scale enterprises are difficult to achieve upgrade and transformation successfully,and cannot update or upgrade equipment following the rhythm of the industry.The efficiency and competitiveness of the industry decline,and thus are gradually eliminated by the market.This article starts from the perspective of environmental regulations and investment in environmental protection.It uses five-year intertemporal panel data from listed companies of China in the chemical industry from 2013 to 2017,and uses a dual fixed-effect panel data model and DID model to analyze the impact of environmental regulations and investment on the performance of chemical companies.It is concluded that the first is that the intensity of environmental protection investment has a significant impact on the performance of the company;the second is that environmental protection regulations and the intensity of environmental protection investment will positively affect the performance of chemical companies;the third is that the impact of environmental protection regulations on the performance of chemical companies exists between different ownership types are certain differences.Among non-state-owned enterprises,environmental protection regulations have no significant impact on the performance of inter-industry companies;fourth,the impact of environmental protection investment intensity on the performance of chemical companies has certain differences among different types of ownership,and the increase in environmental protection investment by state-owned enterprises Enterprise performance is more than that of non-state-owned enterprises.Based on the theoretical and empirical analysis conclusions,this article puts forward the following suggestions: First,make recommendations to the government on implementing environmental protection regulations,environmental supervision systems and government subsidy systems by industry and tools,establishing a communication feedback mechanism with enterprises and the public,and strengthening publicity and guidance;The second is to propose to companies that they must be forward-looking,actively use full policies to apply for preferential treatment,establish a sense of sustainable development,enhance a sense of social responsibility,increase investment in environmental protection,and encourage innovation;the third is to raise awareness of sustainable development and social responsibility to the society of awareness,and actively participate in the recommended environmental protection.The possible innovations of this paper are: one is to select a more typical polluting company-a chemical industry company to conduct a micro study of the company;the second is to deeply explore the impact of changes in environmental protection regulations and environmental protection investment on corporate performance.The shortcomings of this article are: First,it does not discuss the possible lag effect of changes in environmental protection regulations and environmental protection investment changes on corporate performance;second,it does not discuss the relationship between changes in environmental protection regulations and environmental protection investment changes.