Inconsistency in Performance Feedback and Corporate Environmental Performance

Environmental issues have absorbed attention from social authorities and individuals. Although enterprises are the primary bearers of social responsibility, at the same time, they produce substantial environmental pollution. Under this background, based on a behavioral theory of the firm and prospect theory, this article takes A-share substantial polluting companies listed in Shanghai and Shenzhen from 2012 to 2017 to discuss how companies will manage their environmental performance when companies in different performance feedback results base on historical and social aspiration levels .The research results show whether it is a historical or social aspiration level when actual corporate performance is worse than the aspiration level, the higher the degree of difference, the worse the corporate environmental performance level. When actual corporate performance is better than the aspiration level, whether it is a historical or social aspiration level, the higher the degree of difference, the lower the corporate environmental performance level is. Further research found that when multiple performance feedback results and their feedback directions are both inconsistent, the more significant negative historical performance feedback and the more positive social performance feedback, the better the environmental performance of the enterprise.