Research On The Impact Of Gree Electric's Environmental Responsibility Performance On Corporate Financial Performance

Although the pursuit of economic benefits is the main objective of a company,green economy should be an important policy for the sustainable development of the company and society.However,most companies today believe that the fulfillment of environmental responsibility will increase the economic burden of the company.Therefore,most companies often do not take action to fulfill their environmental responsibility,which leads to the deterioration of the environment in China.This paper focuses on the impact of environmental responsibility on the financial performance of Gree Electric.Firstly,it explains and analyzes the theoretical basis,including financial performance theory,environmental responsibility theory,sustainable development theory and stakeholder theory.Secondly,the current situation of the industry is analyzed.It selects a sample of28 home appliance companies from 2012-2019 as the reference sample,with a total of 224 research samples.It uses factor analysis to extract nine single variables from four aspects of corporate profitability,debt servicing and development,and operation and refine them into a comprehensive financial index that can reflect corporate financial performance to quantify corporate financial performance,and adopts the environmental responsibility score from Hexun.com measurement system to quantify environmental responsibility and applies it to analyze the current situation of the industry.It is found that the overall level of environmental responsibility in the home appliance industry is low,although there is some progress.For the case study,Gree Electric was selected as a case study.Firstly,the path study of the impact of environmental responsibility to promote Gree Electric is found to improve the financial performance of the company through reputation capital,upstream and downstream capital and government capital perspectives,followed by the selection of its relevant data from 2012-2019,and the synthesis of comprehensive financial indicators using factor analysis as a consideration of overall financial performance.The four financial capabilities of enterprises are used as a way to analyze the impact of the fulfillment of environmental responsibility on the financial performance of enterprises from the perspective of specific financial indicators.The results show that the implementation of environmental responsibility has little impact on Gree Electric performance in the short term.In the long term,it will contribute to the growth of financial performance.Finally,policy recommendations are given to make enterprises more motivated to fulfill their environmental responsibilities and take the initiative to fulfill their environmental responsibilities,which can effectively solve the situation that some enterprises do not actively fulfill their environmental responsibilities on the one hand,and help enterprises improve their financial performance on the other hand,so that enterprises can achieve a win-win situation of economic development and environmental responsibilities.