Research on the Impact of Environmental Regulation on Corporate Financial Performance

In recent years, with the deepening of the concept of sustainable development, China's government has been paying more and more attention to environmental protection, especially under the strategic objectives of carbon peak and carbon neutrality, and the government and relevant departments have been vigorously pursuing environmental regulatory policies. At the same time, some enterprises tend to avoid the environmental pollution and negative externalities caused by their production and operation process out of the pursuit of financial performance. This paper takes listed enterprises in Wenzhou City as the research object, uses the relevant data of 16 listed enterprises in Wenzhou City during 2010-2021, and adopts panel regression empirical analysis method to empirically study the impact of environmental regulation on the financial performance of listed enterprises, and verifies the intermediary effect of technological innovation on it, and the results of the study show that: environmental regulation has a significant positive impact on the financial performance of listed enterprises, and there is a complete intermediary effect of technological innovation. The results show that environmental regulation has a significant positive effect on the financial performance of listed enterprises, and there is a complete mediation effect of technological innovation. After comprehensively examining the relationship between environmental regulation and enterprise financial performance, this paper gives a series of effective improvement countermeasures for listed enterprises in Wenzhou City in terms of implementation by the government and fulfillment by enterprises.