Internal Control,Institutional Environment And Corporate Environmental Protection Investment

In recent years,the economy has developed rapidly and environmental problems such as ecological imbalance have become increasingly prominent.As the main producers of environmental pollution,enterprises should take on more environmental responsibilities,enhance their awareness of social responsibility,and then shape sustainable competitiveness.Enterprise internal control has gradually become a weapon for enterprises in various countries to prevent risks and improve management quality.Any investment decision-making activity is the result of the interaction between the internal environment of the enterprise and other process elements,and the environmental protection investment decision of the enterprise is an important manifestation of fulfilling its environmental responsibility.A good internal environment can effectively operate the internal control system,standardize process elements before,during and after decision-making,and promote the improvement of internal control quality.This article reviews the relevant research results of domestic and foreign researchers on internal control,institutional environment and corporate environmental protection investment,and puts forward the research hypothesis of this article based on stakeholder theory,social responsibility and other related theories.Therefore,taking China’s 2008-2018 Shanghai and Shenzhen A-share listed companies in heavy-polluting industries that disclosed the amount of corporate environmental protection investment as a research sample,from the perspective of internal control quality as the starting point,the main research is to study whether high-quality internal control can promote the scale of corporate environmental investment At the same time,the institutional environment is divided into formal and informal systems,which further distinguishes the differences in the intensity of environmental regulations and the differences in media attention in the areas where companies are located,and examines the formal systems—environmental regulations and informal systems—media attention The impact on the relationship between internal control and environmental investment has enriched the relevant research on the factors affecting corporate environmental governance.In addition,tentatively explore how listed companies in heavy-polluting industries with different property rights appear in the above-mentioned relationship.This article mainly draws the following conclusions: First,high-quality internal control can significantly promote the scale of corporate environmental protection investment;second,in areas with high-intensity environmental regulation,high-quality internal control can significantly positively promote the scale of corporate environmental investment;Companies under the attention of different types of media have different impacts of high-quality internal control on corporate environmental protection investment.Among them,policy-oriented media attention has a positive moderating effect on the scale of high-quality internal control and promotion of corporate environmental investment,while the moderating effect of market-oriented media attention is negatively correlated.Fourth,compared with non-state-owned enterprises,the high-quality internal control of state-owned enterprises is more able to promote the scale of corporate environmental protection investment;based on the above research conclusions,this article puts forward relevant recommendations,and analyzes the limitations of this article’s research and future research directions.