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Because of principal-agent relationship between managers and shareholders, managers' opportunism often leads to overinvestment in the presence of free cashflow. This paper proves that there is a significantly positive correlation between overinvestment and free cashflow in China's listed companies from the year 2003 to 2005 by empirical method, which is consistent with agency cost explanations. The empirical analysis uses an accounting based framework to measure the free cashflow and overinvestment.

The relative weight of every influencing factor is figured out by building the layer evaluation model of the energy-saving and emission reduction. Based on this model, combing with the multi-attribute decision ranking method in the Rough Set Theory, the paper gets an outcome of comprehensive evaluation ranking of provinces in 2006 after the comprehensive consideration of the nine factors including economic level, technological environment, social development, energy consumption and so on. Therefore the traditional evaluation method of the energy-saving and emission reduction with energy consumption per unit GDP as the only evaluation criteria is modified.

With the gradual transformation of future economy from the lack of environmental management to a new form of economy which focuses on sustainable development, the enterprise must shoulder more environmental management responsibilities. As environmental information disclosure and economic performance have an intrinsic correlation, the institutional arrangement of environmental information disclosure system will necessarily promote the economic performance. This research finds that environmental information disclosure has a positive effect on economic performance, as is shown that enterprises which sufficiently discloses their environmental information have better economic performance.