Analysis Of The Performance Effect And Driving Factors Of Industrial Enterprises Under The Influence Of Corporate Environmental Responsibility

As one of the industries that contribute the most to China’s economy,its gross domestic product(GDP)has always been the main component of China’s GDP.However,the huge economic benefits are at the expense of the environment,due to the backward technology of China’s industrial enterprises,lack of supervision,insufficient environmental protection facilities,industrial activities have become the largest source of pollution in China.Facing the increasingly serious environmental situation and pressure from the social public,the government and other stakeholders,studying how to motivate industrial enterprises to consciously fulfill their environmental responsibilities is the key to promote China’s economy to achieve green and high-quality development.This thesis aims to study the performance effects of industrial enterprises under the influence of environmental responsibility and the drivers of performance change,and to make further reference suggestions for the promotion of sustainable development of companies.Specifically,the main contents of this article are as follows:First,taking 725 listed industrial enterprises in China as the research object,the influence of corporate environmental responsibility on short-term performance and long-term performance is empirically analyzed by using the propensity score matching(PSM)and the Difference-in-difference analysis(DID),and then the placebo test and variable substitution test are used to verify the stability of the results,and finally the heterogeneity effect is explored from three perspectives:equity nature,industry nature and regional heterogeneity.The empirical results show that environmental responsibility has a certain inhibitory effect on the short-term performance of industrial enterprises,but has a significant role in promoting long-term performance.The heterogeneity test results show that the performance of environmental responsibilities of private enterprises has a greater impact on performance than that of state-owned enterprises,and the performance of environmental responsibilities of heavily polluting enterprises is more sensitive to the impact of performance than that of non-polluting enterprises.In terms of regional differences,compared with the eastern region,the negative effect of enterprises’ environmental responsibilities on short-term performance is stronger in the central and western regions,but weaker in promoting long-term performance.Second,based on the panel data of 217 green industrial enterprises from 2009 to 2020,the fixed effect models and random effects models combined with DuPont analysis are used to evaluate the drivers of the changes in Return of Equity(ROE)and Economic Added Value(EVA)of green enterprises,and the systematic GMM method is used to confirm the robustness of the results.The empirical results show that the main factors for the change in the ROE are the tax burden,interest burden,asset turnover rate and EBIT margin,of which the EBIT margin is the most critical factor;the driving factor for high EVA is invested capital.The innovations in this thesis are concentrated in the following three points.First,from the perspective of research content,this thesis selects two dimensions of long-term and shortterm to evaluate financial performance,and further explores the driving factors for changes in the financial performance of green enterprises while explaining the relationship.Most previous studies have focused on short-term profitability of firms and are limited to "relationship" studies,which will not provide a reference for green companies to further improve their financial performance.Second,from the perspective of research methods,when empirically demonstrating the relationship between corporate environmental responsibility and financial performance,the PSM and DID are used to effectively overcome the problem of bias due to sample selection.Previous empirical studies on corporate environmental responsibility and financial performance mostly use regression models,which have bias problems and are correlation studies,which cannot well explain the causal relationship between the two.Third,in terms of the selection of corporate environmental responsibility indicators,this thesis uses the E index in the ESG indicators of China Securities as a measure.In the past,empirical research at home and abroad based on the relationship between corporate environmental responsibility and corporate financial performance has taken corporate emission data and corporate environmental information disclosure as the standard for measuring the performance of environmental responsibility,and cannot comprehensively and systematically measure the environmental protection practices of enterprises.