Author(s)

Qichen Wei

School of Management, Jinan University, Guangzhou, China.

After the central environmental protection inspector, the external environmental regulatory environment facing enterprises has undergone tremendous changes. This paper uses the double-difference method, using data from Shanghai and Shenzhen A-share listed companies from 2013 to 2017, to empirically test the impact of the central environmental protection inspector and its mechanism. The research results show that the financial performance of listed polluting companies has significantly improved after the central environmental supervision, but the improvement of financial performance has heterogeneity of property rights, and state-owned enterprises are significantly higher than non-state-owned enterprises. Further analysis shows that there is significant positive earnings management in state-owned listed polluting enterprises, while non-state-owned enterprises are not. This paper analyzes the impact of the central environmental protection inspector on the production and operation of the enterprise in a timely manner, and beneficially supplements the differences in earnings management of heavily polluting enterprises in the procyclical period, and supplements relevant literature.

Environmental Inspector, Financial Performance, Earnings Management

Wei, Q. (2020) Central Environmental Protection Supervisor, Nature of Property Rights and Corporate Financial Performance. Modern Economy, 11, 669-685. doi: 10.4236/me.2020.113050.