An Empirical Study On The Impact Of Environmental Regulation And R&D Investment On The Financial Performance Of Coal Enterprises

Coal is China’s basic energy and important raw material.Therefore,the coal industry is also an important basic industry related to China’s energy security and economic lifelines.However,with the accelerating process of coal industrialization,the environment caused by mining,transportation,production,and consumption has become increasingly important.Pollution problems are also becoming increasingly prominent.The Chinese government has adopted a series of effective regulations to limit the pollution generated by the coal industry.The implementation of these regulatory measures will enable coal companies to comply with environmental regulations and minimize pollution.Coal companies also increase their R&D investment through technological innovation.To solve the problem of pollution.However,it cannot be ignored that it will also affect the efficiency of coal companies to varying degrees.Therefore,it is very important to study the relationship and influence between environmental regulation,R&D investment,and the financial performance of coal companies.This paper selects the listed companies of coal as the research subject,and uses regression analysis to empirically test the effect of environmental regulation on R&D investment and financial performance and R&D investment on financial performance.At the same time,it explores the mediating effect of R&D investment in environmental regulation on financial performance.The results of the study show that:(1)Environmental regulation has a certain role in promoting the R&D input of coal companies in China.Further studies have found that environmental regulations can promote the investment of coal companies in environmental protection research and development,and demonstrate that the national environmental regulatory policy has an environmental protection research and development for coal industry enterprises.(2)R&D investment can improve the financial performance of coal companies and is caused by non-environmental R&D investment.Because coal companies are investing too much in environmental R&D,they are more than offsetting the gains for coal companies.(3)Environmental regulation has a negative impact on the financial performance of coal companies,indicating that under the government’s environmental regulation policy,coal companies are faced with relatively large investment in pollution control,and then the company environmental investment expenditures may be squeezing the normal production and management input of the company.This reduces the financial performance of coal companies.(4)R&D investment does indeed play an intermediary role in the impact of environmental regulation on the financial performance of coal companies.The technological innovation triggered by environmental regulation generates innovative compensation effects that have a positive effect on the financial performance of coal companies.Further tests found that it was caused by environmental protection R&D investment.In the end,based on the empirical research results of the full text,the problems faced by the coal enterprises in their development are proposed,and suggestions are made from the three levels of the country,the enterprise,and the society to promote the green and efficient development of coal companies.