Research On The Influence Of Environmental Cost Internalization On Mining Enterprises’ Financial Performance

There are many problems in the process of my country’s modernization,especially the serious contradiction between the sustained economic development and the effective protection of the environment.Against the backdrop of increasingly prominent economic and environmental conflicts,environmental protection is of great significance to society at this stage.The society’s environmental protection issues for enterprises are also developing in the direction of high standards and strict requirements.This urges enterprises to take into account social responsibility while seeking benefits and development,and pay attention to environmental protection.In order to deal with the increasingly severe environmental problems,the Chinese government has continuously strengthened environmental supervision and issued relevant laws and regulations.However,without the support of research theories,most companies still believe that internalizing environmental costs means that they need to bear more costs,and they will certainly have an adverse impact on the financial performance of the company,so they will not actively choose to internalize environmental costs.As one of the heavily polluting industries,the mining industry will bring great impact and damage to the social environment.In this case,the society will put stricter requirements on them,requiring them to pay more attention to the protection of the environment and the measures to internalize environmental costs.Measures for internalization.Therefore,this paper selects listed companies in the mining industry as the specific objects of relevant research,manually sorts out the relevant data and builds a measure of environmental cost internalization,and uses them as explanatory variables in the research.At the same time,select ROA and ROE indicators as the explained variables in the empirical link,build a relevant regression model based on the above variables,and use this model to further verify how the internalization of environmental costs in the mining industry may affect the financial performance of companies,including:(1)Whether the financial performance of an enterprise that internalizes environmental costs will be affected by the degree of internalization;(2)If there is an impact,whether the impact is short-term or long-term,whether it is a positive effect or a negative effect;(3)In the context of government supervision,will it have a certain regulatory effect on the relationship between internalization of environmental costs and financial performance.Through the relevant empirical process and result analysis,the final conclusions are as follows:(1)In a short time,the internalization of corporate environmental costs has a negative correlation with financial performance;(2)The internalization of corporate environmental costs has a negative impact on financial performance The negative correlation effect produced is not long-term;(3)In the context of government supervision,it will have a moderating effect on the relationship between the internalization of environmental costs and financial performance.The research results of this article help companies,especially high-pollution industries,raise environmental awareness,weaken their resistance to environmental responsibility,and promote enterprises to consciously shoulder the social responsibilities in the process of realizing benefits and pursuing development.At the same time,it also reveals the special role of government supervision in this process,providing a reference for the direction of government supervision,which can further improve government supervision measures,and ultimately promote enterprises to better fulfill their environmental protection responsibilities and promote the harmonious development of the social environment.