Research On The Relationship Between Environmental Regulation And Business Performance Based On The Characteristics Of Elements

As mentioned in the report of the 19th National Congress of the Communist Party of China,insisting on the harmonious coexistence of man and nature,Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era expounded the connotation of the thought of ecological civilization.In order to improve the current situation of the ecological environment and promote the coordinated development of economic construction and ecological environment construction,my country continues to innovate institutional development,promulgate and implement laws and regulations,regulate the behavior of economic entities,and endow them with environmental responsibilities.As an important main body to promote economic development and help the construction of ecological civilization,industrial enterprises are the main driving force of resource consumption and an important object of environmental remediation.In addition,the difference of factor characteristics determines the difference of enterprises’ behaviors in dealing with various environmental regulation policies.Therefore,based on the micro-level,this paper studies the relationship between environmental regulation and business performance from a dynamic perspective,aiming at the time lag of policy effects,and considers the important adjustment factor of factor characteristics,in order to explore the internal driving force of enterprise development,promote the coordination of economic construction and ecological environment protection.In order to deeply study the relationship between environmental regulation and business performance,this paper,based on the existing evaluation system,uses the disclosed key pollutant indicators to construct a comprehensive evaluation system for environmental regulation indicators,and completes the quantification of indicators.In terms of empirical research,this paper selects A-share listed companies in Shanghai and Shenzhen stock markets from 2010 to 2019 as the research object,with business performance as the explained variable and environmental regulation as the explanatory variable,to explore the relationship between environmental regulation and business performance.At the same time,the concept of factor characteristics is introduced to concretize industry heterogeneity,classify industrial enterprises according to the characteristics of production factors,and analyze the moderating effect of different factor characteristics on the relationship between environmental regulation and business performance.With the help of the two-way fixed-effect model and the moderating effect test,this paper finds that environmental regulation has a significant negative correlation with short-term business performance,and a significant positive correlation with long-term business performance.Different factor characteristics have different moderating effects on the relationship between environmental regulation and business performance:the characteristics of labor factors and technical factors will significantly weaken the negative impact of environmental regulation on short-term business performance,and the characteristics of capital factors will significantly enhance the negative impact of environmental regulation on shortterm business performance.The characteristics of labor factor,capital factor and technology factor will significantly enhance the positive correlation impact of environmental regulation on long-term business performance.According to the conclusions of the empirical research,this paper puts forward suggestions for the government and the enterprises:the government should carry out publicity activities to guide enterprises to establish a correct development concept;be good at using fiscal and taxation measures to guide,and provide a good environment for enterprise innovation;refine environmental regulation policies,formulate policies in a targeted manner according to the characteristics of enterprises and industries,and improve the effect of policy implementation.In terms of enterprises,it is necessary to correctly understand environmental regulation policies and establish a sustainable development concept;insist that innovation is the primary driving force for development,increase investment in technical elements,adhere to the green innovation-driven development strategy,and enhance green innovation capabilities.