The Influence of Central Ecological and Environmental Protection Supervision on the Performance of Environmental Protection Enterprises: Based on analysis of listed companies

Rubing Qi

doi:10.54097/aq6pvt42

Authors

Rubing Qi

DOI:

https://doi.org/10.54097/aq6pvt42

Keywords:

Central environmental supervision, Enterprise performance, Environmental regulation, Compliance, Cost, Innovation and investment

Abstract

Based on the semi-annual financial data of China's listed enterprises from 2017 to 2022, this paper divides the sample enterprises into environmental listed enterprises and other general listed enterprises in the industry of environmental listed enterprises, and evaluates the impact and mechanism of the "Regulations on the Supervision of Central Ecological and Environmental Protection" on the performance of environmental listed enterprises through the difference-difference method. This paper finds that the Regulation reduces the performance level of environmental listed enterprises. The strengthening of regulatory effect and the reduction of innovation input are the important mechanisms. From the perspective of heterogeneity effect, the Regulation has greater inhibitory effect on the performance of private environmental protection enterprises, but has no significant effect on the performance of state-owned environmental protection enterprises. Compared with small-scale environmental protection enterprises, the "Regulations" have less inhibitory effect on the performance of large-scale environmental protection enterprises. After a variety of robustness tests, the conclusions of this study are still valid, which can provide important reference for relevant government departments to formulate appropriate environmental policies and promote the stable and healthy development of environmental protection enterprises.

Downloads

Download data is not yet available.

References

Wang Ling, Liu Xiangfeng, Xiong Yan. Central environmental supervision and air pollution control: An empirical analysis based on micro-panel data of prefecture-level cities [J]. China Industrial Economy, 2019(10):5-22.

Liu Zhangli, Wu Jiannan. Has the Central Environmental Inspector improved air quality? Empirical research based on differentially differential model [J]. Review of Public Administration, 2019(2):23-42.

Zhou Xiaobo, Ma Tianming. Research on the effectiveness of central environmental supervision based on the perspective of national governance [J]. Contemporary Finance and Economics, 2020(2):27-39.

Li Yi, Gao Da, Wei Ping. Can central environmental protection inspectors induce green innovation in enterprises? [J]. Research in Science of Science, 2021(8):1504-1516.

Song Peng. Has the central environmental protection Inspector promoted the green innovation of heavy polluting enterprises? -- Evidence from green patent data of listed enterprises [J]. China Environmental Management, 2022 (3):73-80.

Yang Liu-yong, ZHANG Ze-ye, ZHENG Jian-ming. Can Central environmental inspectors promote corporate environmental investment? -- Empirical analysis based on Chinese listed companies [J]. Journal of Zhejiang University, 2021 (3): 95-116.

Chen Renjun, Xiao Qing-Lan. Can Central environmental Inspectors improve corporate performance? A case study of listed industrial enterprises [J]. Economic Review, 2019(5):36-49.

Feng G X. Formation of "consensus interactive" environmental policy implementation network: A case study of environmental protection consultation system [J]. Journal of Dongyue, 2016, 37(04):55-61.

[Chen H S. Institutional obstacles and governance paths of environmental rule of law in China -- Based on the analysis of Central environmental protection inspectors.] Law Science (Journal of Northwest University of Political Science and Law), 2019, 37(04):149-159.

Shi Qingling, Guo Feng, Chen Shiyi. "Political blue sky" in Haze control: Evidence from China's local "two Sessions" [J]. China Industrial Economy, 2016(5):40-56.

Ye Ling, Wang Yaxing. Manager overconfidence, firm investment and firm performance: An empirical study of China's A-share listed companies [J]. Journal of Shanxi University of Finance and Economics, 2013(1):116-124.

Xu Feng, Pan Qi, Wang Ya Nan. Research on the impact of green low-carbon transformation on corporate profitability under the "two-carbon" goal [J]. Macroeconomic Research, 2022(1):161-175.]

Chen Zhi-gang, Gong Yi-fei. Impact and mechanism analysis of green finance on corporate performance [J]. Finance and Finance, 2022 (5):72-85. (in Chinese)

Shi Daqian, Ding Hai, Wei Ping, Liu Jianjiang. Whether smart city construction can reduce environmental pollution [J]. China Industrial Economics, 2018(6):117-135.

Liu Jinke, Xiao Yiyang. Environmental Protection Tax and Green Innovation in China: Leverage Effect or crowding out Effect? [J]. Economic Research, 2022(1):72-88.]

Wang Jianming. Research on the correlation between environmental information disclosure, industry differences and external institutional pressure: Empirical evidence from the environmental information disclosure of Shanghai listed companies [J]. Accounting Research, 2008(6):5-62.

Wen Zhonglin, Ye Baojuan. Mediation effect analysis: Development of methods and models [J]. Advances in Psychological Science, 2014, (5):731-745.

Li Qingyuan, Xiao Zehua. Heterogeneous environmental regulation tools and corporate green innovation incentives: evidence from green patents of listed companies [J]. Economic Research, 2020 (9): 192-208.

Jia K., Chen S. W., 2019, “Could campaign-style enforcement improve environmental performance? evidence from China’s central environmental protection inspection”, Journal of Environmental Management, 245, 282-290.

Van Rooij B., 2016, “Implementation of Chinese environmental law:regular enforcement and political campaigns”, Development and Change, 37(1), 57-74.

He, G., M. Fan, and M. Zhou, 2016, “The Effect of Air Pollution on Mortality in China: Evidence from the 2008 Beijing Olympic Games”, Journal of Environmental Economics and Management, 79, 18-39.

Porter, M. E., 1991, “America's Green Strategy”, Scientific American, 264(4), 168.

Porter, M. E., and C. Van der Linde, 1995, “Toward a New Conception of the Environment-Competitiveness Relationship”, Journal of Economic Perspectives, 9(4), 97—118.

Karen Palmer, Wallace E. Oates, and Paul R. Portney, 1995, “Tightening Environmental Standards:The Benefit-Cost or the No-Cost Paradigm?”, Journal of Economic Perspectives, 9(4), 119-132.

Ghosal, V., Stephan, A., Weiss, J.F., 2019, “Decentralized environmental regulations and plant-level productivity”, Business Strategy and the Environment, 28(6), 998–1011.

Serfling, M., 2016, “Firing Costs and Capital Structure Decisions”, Journal Of Finance, 71(5), 2239-2285.

Zhang, D., Vigne, and S. A., 2021, “ The causal effect on firm performance of China’s financing–pollution emission reduction policy: Firm-level evidence”, Journal of Environmental Management, 279, 111609.