Environmental Regulation,Background Characteristics Of Senior Executives And Enterprise Performance

The 19 th National Congress of the Communist Party of China has emphasized the importance of improving the quality of economic development by reversing the idea of seeking the speed of economic development in the past.Strengthening governance of environmental problems and exploring effective ways to achieve a win-win situation between economic development and environmental protection have become the main goals in the process of high-quality and sustainable development in China,and environmental regulation,as a key means and effective way to achieve this goal,is bound to be directly related to the performance level of enterprises.Corporate executives are responsible for seeking the optimal allocation of corporate resources in the dynamic external environment changes,and occupy a leading position in corporate decision-making.Their decision-making level and strategic preference influenced by their own background characteristics can often determine the development trend and performance of enterprises.Therefore,in the face of external pressure of environmental regulation,the characteristics of executive background may play a moderating role in the relationship between environmental regulation and corporate performance.Based on Porter hypothesis and top echelon theory,from the perspective of corporate decision-making,this paper takes the listed companies in environmentally sensitive industries(steel,chemical,mining and construction materials)from 2014 to 2020 as the research object,and integrates the background characteristics of senior executives into the analysis framework.Test the performance of environmental regulation on enterprise directly influence to prove that potter hypothesis in the existence of the local situation,and replace executives with CEO background characteristics,analysis of different background characteristics on the relationship between executives play different adjustment effect,further to group all samples according to the nature of the ownership,discussed under the background of the ownership of the heterogeneity,What are the differences between the moderating effects of executive background characteristics? Finally,after analyzing and discussing the empirical results,some specific suggestions are put forward from the government and enterprises.The results show that: environmental regulation significantly promotes firm performance,and executive background plays a moderating role between them,which supports the existence of Porter’s hypothesis in the local context of China.Because executives background characteristics covers many aspects,each aspect of environmental regulation and the adjustment of the relationship between enterprise performance play effect also is not the same,in particular,senior male gender features,long term and party member’s identity significant positively regulate the positive correlation between them,and executives high age characteristics and characteristics of higher education will significantly negative to adjust the positive correlation between them,and In enterprises with different property rights,the moderating effects of different background characteristics are also very different.The main contribution of this paper lies in: theoretically,it expands the research perspective on the relationship between environmental regulation and firm performance,enriches the influence mechanism between the two,and contributes micro evidence for the existence of Porter hypothesis in the local Chinese scenario.In practice,it provides a reference direction and implementation approach for enterprises with different attributes in terms of management appointment,strategy selection and attitude towards environmental regulations,as well as reasonable suggestions and micro data for government departments to improve the implementation and effectiveness of environmental regulations.