Research On The Relationship Between Environmental Performance And Financial Performance Of Coal Industry In China

The effect of enterprise environmental performance on financial performance has always been a hot topic in environmental management.In the past,China’s economy has made remarkable achievements,but the problem of environmental pollution is also gradually prominent.Environmental pollution not only affects China’s economic development,but also hinders the process of China’s sustainable development.More seriously,it directly affects the physical and mental health of people.In recent years,although people’s awareness of environmental protection has been continuously strengthened,there are still many enterprises,especially the heavily polluted coal enterprises,blindly sacrificing the surrounding environment in order to pursue immediate economic interests,which obviously deviates from the concept of sustainable development advocated by China.China is a large country using coal energy,the development of which has become the top priority of China’s economic development.Because Coal enterprise is the main body of social development,it needs to use a large amount of non-renewable natural resources in daily production and business operation process.However,the extensive coal mining model,low industrial concentration,lack of innovation,low resources circulation utilization degree lead to the environmental pollution as well as the continuous development of new energy,which has restricted the development of coal industry.How the coal enterprise’s environmental performance can affect its financial performance,there is no unified conclusion.And whether economy and environment will be able to achieve "win-win" is also a debate topic in academia.This paper takes the coal industry as the research object and constructs a set of index evaluation system that can scientifically measure the environmental performance of enterprises,which can not only be used to evaluate the environmental impact of the production process of China’s coal enterprises,but also lay a solid theoretical foundation for the sustainable development of enterprises.The research object of this paper is listed coal enterprises to study the relationship between their environmental performance and financial performance.Firstly,literature related to environmental performance and financial performance was collected and sorted out,and it was found that there were two kinds of literature achievements,one was theoretical research achievements and the other was empirical research achievements.This paper analyzed and summarized the two kinds of achievements.Secondly,based on the existing theories,the research hypothesis is put forward.In order to test out the hypothesis,this paper is taking 15 coal a-share listed companies in China from 2011 to 2017 as the research object,taking enterprise environmental performance as the research variable and financial performance as the dependent variable for empirical analysis,and using factor analysis and regression analysis.The following conclusions are drawn:(1)There is a correlation between the environmental performance and the financial performance of coal enterprises.When the advanced index is used to measure the environmental performance,it has a significant positive correlation with the financial performance.(2)When environmental protection input intensity is used as an indicator to measure environmental performance,it has a u-shaped correlation with corporate financial performance;(3)When resource recycling index is used as an indicator to measure environmental performance,it has a significant positive correlation with financial performance.After summarizing the deficiencies of the paper,this paper puts forward reasonable suggestions on how to improve the relationship between environmental performance and financial performance of listed coal enterprises from the perspectives of government,enterprises and society.The government should improve the environmental information disclosure mechanism and environmental protection incentive mechanism;Enterprises should constantly improve their innovation ability and introduce scientific and technological talents.Society should strengthen supervision and improve environmental protection policies.