Can Environmental Regulation Improve the Corporate Environmental Performance of Heavy-Polluting Enterprises of China?
Yi Zhanga Min Xiaa, Hongyu Hua

Abstract
The "Porter Hypothesis" proposes that environmental regulation positively affects corporate performance through technological innovation, but the existing literature has discrepancies in this hypothesis. Based on this, we construct an intermediary model in which government environmental regulations and corporate environmental performance, and select 165 listed companies in heavily polluting industries as research samples to explore the mediating role of environmental strategy. The empirical results show that environmental regulations have a positive impact on corporate environmental performance; environmental strategies completely mediate the impact of environmental regulations on corporate environmental performance. The research conclusions support the application of the "Porter Hypothesis" in China's heavy-polluting industries, and also provide useful enlightenment for the government to use environmental regulations to guide enterprises to implement active environmental management strategies.

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