Analysis On The Impact Of Anada Environmental Cost On Enterprise Performance

With the rapid development of the world economy today,environmental problems occur frequently,which poses a challenge to the environment on which we live.After being aware of the problem,my country has increased its environmental protection efforts and introduced more policies.Due to the successive introduction of environmental protection policies,the environmental protection tasks of enterprises have been further increased.The chemical industry plays an important role in my country’s economic development.Whether due to policy supervision or social responsibility,companies have to pay environmental costs.But what impact will the environmental costs of companies have on corporate performance?Scholars mainly hold four viewpoints:environmental cost positively affects business performance,environmental cost negatively affects performance,and environmental cost has lag and uncertainty on business performance.Therefore,this article studies the relationship between the two to provide relevant decision-making basis for managers and the government.Based on previous scholars’ research,this paper studies whether chemical companies’environmental costs will affect their performance.Anhui Ananda Titanium Industry Co.,Ltd.(hereinafter referred to as Ananda),which has a relatively high environmental cost input in the chemical industry,was selected as the research object,and investigated from two aspects of financial performance and market performance.Through vertical and horizontal comparisons,it was found that:In terms of performance,between 2014 and 2020,with the increase in corporate environmental costs,Anada’s profitability has declined,but its solvency and operational capabilities have not decreased.In terms of market performance,the investment in environmental costs did not reduce the value of the company.This is because with the increase in environmental costs,the government subsidies and tax benefits that companies receive have generally shown an increasing trend,so the company’s market performance has improved.Based on the conclusions of the case study,this article puts forward the following recommendations.From the government level,first of all,the government should encourage companies that have high environmental costs and have better implementation effects to appropriately increase government subsidies and provide tax incentives to increase the enthusiasm of companies to invest in environmental protection.Secondly,establish a more comprehensive environmental cost input database,and timely disclose data on corporate environmental cost input and results to facilitate government supervision and academic research.Finally,companies should actively fulfill their social responsibilities,enhance environmental awareness,appropriately increase environmental protection investment independently,and at the same time control costs other than environmental costs,strengthen internal control of cost management and increase R&D investment to offset the negative impact of increased environmental costs.The research in this article supplements the literature on environmental costs and corporate performance,and at the same time provides management and decision-making basis for government supervision departments and corporate management.