COMPARISON OF REGIONAL RELATIONSHIP BETWEEN ENVIRONMENTAL PERFORMANCE AND FINANCIAL PERFORMANCE: EVIDENCE FROM CHINESE LISTED COMPANIES IN HEAVY POLLUTION INDUSTRIES
YANG Xia, WANG Le-juan
Business School, Xi'an International Studies University, Xi'an 710128, China
Abstract This paper researches the relationship as well as in different regions based on the data of Chinese listed firms in heavy pollution industries form 2011 to 2014. Environmental performance is measured by the unit operating income discharging reduction, and financial performance is measured by return on equity. This paper divides all samples into different groups based on different regions. According to economic development level in different regions the samples are divided into the eastern region, the central region and the western region. According to resource abundance degree in different regions the samples are divided into abundant resource provinces and non-abundant resource provinces. This paper finds that environmental performance could improve financial performance, the relationship in the central and eastern region is more positive than that in the western region, and the relationship is positive significantly in abundant resource province while the relationship is not that obvious in other provinces. It has its universality and national regional resources distribution in the western region, while the national policy implementation is relatively complex and diverse. Companies in the western region should be combined with its own resource and develop related industries with regional features and competitiveness. Companies in abundant resource province should put more consideration to the technological innovation driven industrial upgrading and reduce reliance on resources. For the province short of resources, it is needed to require more detailed regional analysis, combine with the different regional characteristics, and put forward regional detailed measures emphatically targeted for the coordinated development of environmental performance and financial performance.
2016, Vol. 31 
