Environmental Regulation,Firm Heterogeneity and Firm Exit

We have an empirical analysis on the influence about environmental regulation to firm exit,by using Database of Chinese Industrial Enterprises from 1999 to 2007. The result shows that:the environmental regulation will increase the probability of firm's exit;the enterprise which lack of technological innovation increase its probability of exit when environmental regulation become stricter. But the one with technological innovation has less connection with environmental regulation. Compared with big-scale enterprises,small-scale enterprises are under more affection of environmental regulation. There are a positive correlation between environmental regulation and the quit of private enterprise,state-owned business. However,foreign-owned enterprises have the opposite correlations. In contrast to east area,environmental regulation has a positive influence on the middle and west area.