Environmental Regulation, Industrial Heterogeneity and Value Compensation

Lisha Chen,Changqing Ding,L Zhao,L You,J Cai,A Xavior

doi:10.1051/matecconf/201710005077

Lisha Chen, Changqing Ding + Show 4 more

Open Access

https://doi.org/10.1051/matecconf/201710005077

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Abstract

This article divided environmental regulation tools into market-oriented environmental regulation, environmental administrative control and environmental pollution regulation, divided enterprises into pollution intensive and clean production enterprises. Take Chinese manufacturing listed companies as research object, through panel data analysis, this article measured short-term and long-term value compensation effect and the possible existence of the threshold effect and cumulative effect of different environmental regulation tools for different types of micro enterprises to inspect Porter hypothesis and to inspect the effect of Chinese environmental regulation.

Highlights

Deterioration of living environment forced governments to take more efforts on environmental regulation
It is ponderable to link environmental regulation and enterprise value to search the influence of environmental regulation on enterprise, to observe whether value compensation effect do exist, and whether industry heterogeneity affect the influence
Independent variables: Environmental regulation variable was divided into market-oriented environmental regulation (PEG), environmental administrative control (GOV) and environmental pollution regulation (CAS)

Summary

Introduction

Deterioration of living environment forced governments to take more efforts on environmental regulation. Under the pressure of environmental regulation, the corresponding coping behavior would be taken by enterprises to reduce the impact of environmental regulation. The coping behaviors may be end-of-pipe control, technology innovation, change of operation direction, etc. All the coping behavior world undoubtedly lead to energy conservation and emissions reduction, and will eventually be reflected in the enterprise value changes. It is ponderable to link environmental regulation and enterprise value to search the influence of environmental regulation on enterprise, to observe whether value compensation effect do exist, and whether industry heterogeneity affect the influence

The influence of environmental regulation on corporate value

Variable definitions and data sources

Model estimate result

The model results of environmental regulation and enterprise short-term value

Policy enlightenment