Research On The Impact Of Market Incentive Environmental Regulation On Corporate Financial Performanc

Since the reform and opening up,China’s economic development has made great achievements,but the problem of environmental pollution has also intensified.Nowadays,environmental quality has become an important indicator to measure the ability of sustainable development,and the management and supervision of environmental issues are becoming stricter.Enterprises are the main sources of pollutants such as sulfur dioxide,nitrogen oxides,and particulate matter.Environmental regulation has a significant impact on the economic activities of enterprises while protecting the environment by affecting the production and manufacturing,resource allocation,technological innovation and other processes of enterprises.With the further development of the market economy,the previous top-down environmental regulation model is changing.In addition to direct government intervention and command control,China has begun to use market-driven environmental regulation tools to solve environmental problems.The market-incentive regulatory tools can stimulate the technological innovation ability of enterprises,and then have an impact on financial performance.From the perspective of enterprises,combined with the environmental regulation system with Chinese characteristics,based on market incentive environmental regulation,this paper studies the relationship between market incentive environmental regulation and technological innovation,and corporate financial performance through empirical and case analysis,qualitative and quantitative analysis methods.Firstly,on the basis of reviewing the research on the impact of environmental regulation on corporate financial performance,it sorts out the relevant theories and hypotheses of environmental regulation,and puts forward the basic assumptions of this paper based on the literature analysis method.Secondly,based on the big data samples at the regional level,industry level and enterprise level,taking listed companies in China’s heavily polluting industries as the research subject,constructing an empirical model based on the basic assumptions put forward in this paper,collecting relevant data of target companies from 2018 to 2020,and constructing a quantitative index of location entropy reflects the intensity of market-based environmental regulation.And adopt normative and systematic measurement methods to test its impact on corporate financial performance and the mediating role of technological innovation level between them.The empirical results show that there is a positive “U”-shaped relationship between market-incentivized environmental regulation and technological innovation,and it will affect corporate financial performance through the mediating effect of technological innovation.Then,take Elion Clean Energy Co.,Ltd.as the object to conduct case analysis,and carry out research combined with the annual report of the company and the social responsibility report.The results of the case study show that the effect of market-incentive environmental regulation on the technological innovation of Elion Clean Energy is to inhibit first and then promote,and finally has a positive effect on the financial performance of the enterprise.Finally,the results of empirical and case analysis are summarized,and the relationship between market-incentive environmental regulation,technological innovation and corporate financial performance is summarized,and suggestions for the optimization of environmental regulation tools are put forward,and outlook for the research.