Research On Environmental Regulations On Enterprise Performance

The environment is not only the natural environment,but also the environment on which human beings live and work.Over the years,in order to protect the ecological environment and promote green innovation of enterprises,China has issued many environmental regulation policies,but the structural,fundamental and ongoing pressure of ecological environment protection has not been relieved.The party and country still emphasize the need to promote the all-round green transformation of economic and social development.Therefore,the introduction of environmental regulation policies to help enterprises green transformation is still the general trend.The country’s calling for attention to environmental issues and a large number of environmental regulation policies,which make enterprises have to take some countermeasures in the process of production and operation.There are three different conclusions about the impact of environmental regulation on enterprise performance.According to the traditional hypothesis,environmental regulation and enterprise performance are negatively correlated.Environmental regulation increases the pollution control cost of enterprises and makes enterprise performance worse than before.According to Porter hypothesis,properly designed environmental policies can stimulate the benefits of innovation and production efficiency,partially or completely make up for the cost of enterprises following environmental regulations,and even produce net benefits.The uncertainty hypothesis holds that the relationship between environmental regulation and enterprise performance is affected by many factors and is uncertain.By sorting out the relevant dissertation,it is found that three research conclusions exist in the impact of environmental regulation on enterprise performance.One of the possible reasons is the different measurement of environmental regulation.This paper divides environmental regulation into three types: command control type,market incentive type and public participation type.Firstly,this paper summarizes the application of environmental regulation in China,and analyzes the development status of environmental regulation in China horizontally and vertically.Secondly,this paper theoretically analyzes the impact of environmental regulation on enterprise performance through four ways,increasing enterprise cost,causing enterprise innovation,changing the market structure;producing environmental effects.At the same time,this paper theoretically analyzes the role of R & D investment in the impact of different types of environmental regulation on enterprise performance.Finally,this paper selects the data of Shanghai and Shenzhen A-share heavy pollution industry companies from 2014 to 2019 for empirical analysis to explore the impact of different types of environmental regulations on enterprise performance and the role of R & D investment.The results show that command control environmental regulation can promote enterprise performance in the current period and the next period,and enterprise performance in the eastern and central regions.Market incentive environmental regulation can inhibit enterprise performance in the eastern region and promote enterprise performance in the central region.Public participation environmental regulation can promote enterprise performance in the current and next periods and enterprise performance in the central and western regions.R & D investment plays an intermediary role in the impact of command control environmental regulation and public participation environmental regulation on enterprise performance,plays an intermediary role in the impact of command control environmental regulation on enterprise performance in the eastern region and public participation environmental regulation on enterprise performance in the central region,and plays a masking role in the impact of public participation environmental regulation on enterprise performance in the western region.Finally,combined with theoretical analysis and empirical analysis,this paper puts forward some suggestions at the government level and enterprise level.Government should attach importance to the formulation of environmental laws and regulations in the eastern and central regions,develop carbon emission trading market in the eastern region,encourage public participation in environmental regulation in the central and western regions,encourage enterprises to launch R & D activities.Enterprises should actively respond to environmental regulation and reasonably increase the investment of R & D funds and personnel.