How Does Public Environmental Protection Restrain Enterprise Overcapacity?-Empirical Analysis Based on Big Data of Chinese Listed Companies

The excess capacity caused by the herd behavior of enterprise investment is one of the important problems that contribute to the waste of domestic resources and environmental pollution. Based on the big data of the whole industry of listed companies in Shanghai and Shenzhen A-shares from 2008 to 2020, this paper explores the impact of public environmental protection on corporate investment behavior. The results show that: (1) public environmental protection can significantly inhibit the herd behavior of enterprise investment; (2) When the degree of regional marketization is higher, the inhibition effect of public environmental protection is stronger; (3) The inhibition effect of public participation in environmental protection is stronger when management shares. In this paper, further tests were carried out by controlling the sample range, controlling endogeneity and changing the measurement method of indicators, and the results were still robust. This paper enriches the research on external governance mechanism of enterprise investment behavior, and tries to discuss the dual role of internal and external governance, and has certain policy significance.