Study on relationship between environmental performance and corporate financial performance—Based on listed companies in heavy polluting industries

In order to investigate the relationship between environmental performance and corporate financial performance of listed companies, the study describes the concept of environmental performance and establishes environmental performance evaluation system. Then, the study selects A-share listed companies in Shenzhen and Shanghai stock markets of heavy polluting industries from 2009 to 2011 as samples and empirically examines the relationship between environmental performance and corporate financial performance. The results show that, there is no correlation between environmental performance of listed companies and corporate financial performance for the year, but there is a positive correlation between environmental performance of listed companies and corporate financial performance of next year. And this study put forward relevant suggestions to provide useful information for decision-making for stakeholders.