Environmental Regulation,Green Innovation And Performance Of Enterprises

Along with China’s economic leapfrogging,the consumption of natural resources and the large-scale emission of three wastes have led to the deterioration of the ecological environment.In response to the growing environmental problems,the Party and State leaders introduced the Environmental Protection Inspector Program(for Trial Implementation)in September 2015 and established the Central Environmental Protection Inspectorate in January 2016,which was sent to various places in the form of "inspections" to inspect the development,implementation,and supervision of environmental protection policies and work of local governments on behalf of the Party and State Council.implementation,and supervision.Since the launch of the central environmental protection inspection system,China’s overall environmental quality and pollution situation has indeed improved.So,when faced with the exogenous quasi-natural event of the central environmental inspectors,do micro firms improve their performance or do they choose to "comply with the cost argument" ? Therefore,this paper investigates this question for domestic listed firms,especially for heavy polluting industrial firms,in order to find out the impact of the central environmental inspectors on firm performance and to explore the transmission paths of green innovation between the two.This paper analyzes the institutional logic of the central environmental protection inspectors,the impact of environmental protection inspectors on firm performance and the mechanism of green technology innovation,and proposes research hypotheses by organizing the research on the relationship between environmental regulation and firm performance and the "central environmental protection inspectors".The required empirical model is constructed using the triple difference method to test the impact of central environmental protection inspectors on firm performance,the effect of firm performance in the face of routine inspectors for firms of different sizes and with different property rights,and the mechanism of green innovation between central environmental protection inspectors and firm performance,while parallel trend,placebo and PSMDID tests are used to ensure the robustness of the results.methods to ensure the robustness of the results.The main findings of this paper are as follows:(1)Central environmental inspectors can have a very positive effect on the development of corporate performance of listed companies.(2)Heterogeneity results point out that for small-scale firms,the central environmental protection inspector system does not exhibit due impact,while large-scale firms are more significantly affected by the inspectors and state-owned enterprises are more affected by the central environmental protection inspectors.(3)The results of the mechanism analysis show that the environmental inspector model enables firms to improve their performance through innovative compensation,and presents a partial mediating effect.Suggestions for this are:(1)Scientific and reasonable environmental regulation measures are beneficial to the development of enterprises,so the government needs to implement environmental measures gradually and not blindly.(2)Regional governments use different incentive methods according to the size of enterprises.(3)Improve the legal system of the central environmental protection inspector mechanism,and improve the authority of environmental protection inspectors’ actions.