Research On The Impact Of Environmental Protection Investment On Enterprise Performance In Iron And Steel Industry

Since the reform and opening up decades ago,China has achieved rapid economic growth.At the same time,it has also consumed a lot of resources and brought a series of problems to the protection of the ecological environment.The country attaches great importance to this,and has continuously issued relevant environmental protection policies to restrict the pollution behavior of enterprises.Based on this,this paper takes the steel industry as the background to study the relationship between environmental protection investment and enterprise performance.First of all,by combing and analyzing relevant domestic research literature,this paper believes that environmental protection investment refers to the total amount of funds invested by enterprises to improve the environment,and defines relevant concepts based on the definition of enterprise performance by the Ministry of Finance.At the same time,the factors that will affect environmental protection investment are discussed,and it is found that environmental protection investment will be affected by government regulation,social supervision and investors’ attention.However,the relationship between environmental protection investment and enterprise performance has not been clarified,and there are three types of relationships: positive correlation,negative correlation and uncertainty.Combining with relevant theories,this paper takes sustainable development theory,corporate social responsibility theory,and Porter hypothesis theory as the theoretical basis for this study.Then the current situation of the steel industry was introduced and analyzed,and it was found that although China has continuously issued policy documents on energy conservation and emission reduction in the steel industry,the current situation of pollution emission in the steel industry in China is still serious,the production capacity and environmental protection investment do not match,and the investment level of enterprises varies greatly.The overall future development of the industry is good,so in the future development of the steel industry,we should keep thinking about how to further save energy and reduce emissions,maintain economic benefits and improve the level of ecological environment protection.In case selection,Baosteel,an environmental protection benchmark enterprise,was selected through screening,and the relationship between environmental protection investment and enterprise performance was analyzed from three aspects of finance,environment and innovation performance,and finally the conclusion of this paper was reached.(1)Environmental protection investment in steel industry can improve financial performance.(2)Environmental protection investment in the steel industry can improve environmental governance.(3)Investment in environmental protection in the steel industry can increase R&D investment and improve innovation performance.Finally,according to the research conclusions,suggestions are made for relevant decision-makers.For enterprises,they should enhance their awareness and increase environmental protection investment within their capabilities,which is conducive to the long-term development of enterprises;As far as the government is concerned,it should actively formulate corresponding policies according to local conditions and improve the supporting legal system.