Research On The Impact Of Environmental Cost On Financial Performance Of Coal Listed Companies

The coal industry is one of China’s important energy industries,and the use of coal plays an important role in the development and utilization of other energy sources.The worsening natural environment and policy guidance have prompted coal companies to speed up the search for a balance between environmental protection responsibilities and corporate growth and development responsibilities.A series of processes such as the mining,utilization and pollution discharge of energy by coal companies had serious negative impacts on the environment.Therefore,this article studied the impact of environmental costs of listed companies in the coal industry on corporate financial performance,explored the internal relationship between environmental costs and financial performance,and provides practical recommendations for coal companies.Based on the analysis of stakeholder theory,sustainable development theory,environmental investment theory and signal transmission theory,this paper proposed two hypotheses about the impact of coal company environmental costs on financial performance.Afterwards,20 coal listed companies from 2011 to 2018 were selected as research samples for empirical research.This article constructed an evaluation index system for the environmental costs and financial performance of coal companies,then used the entropy weight method to determine the weight coefficient of each index,evaluation and analysis of the development status of environmental costs and financial performance of 20 listed coal companies from 2011 to 2018.Then,based on the 8-year data of 20 companies,a variable intercept,double fixed-effect panel data model and a distributed lag model were established to verify the previous hypothesis.The results showed that the current environmental costs of coal companies have a positive impact on the current financial performance,and the environmental costs of the previous period also have a positive impact on the current financial performance.Finally,this article put forward policy recommendations for the coal industry listed companies to improve financial performance and improve the environmental governance model to provide guidance.