Study of the Impact of ESG Performance on The Financial Performance of Mining Companies

Yiming Zhang; Guoyu Mao

doi:10.54097/mrbw8f75

Authors

Yiming Zhang
Guoyu Mao

DOI:

https://doi.org/10.54097/mrbw8f75

Keywords:

Mining companies; financial performance; ESG performance; sustainable development.

Abstract

As a comprehensive evaluation system focusing on corporate environmental responsibility, social responsibility and internal governance, ESG is of great significance for companies to realize sustainable and high-quality development. We select the listed companies in China's mining industry in 2018-2022 as the research sample, and empirically examine the impact of ESG performance on the financial performance of listed mining companies through a fixed-effects model. The results show that the ESG performance of mining enterprises is positively correlated with their financial performance, which is still valid through the robustness test; ESG investment has a heterogeneous impact on the financial performance of mining enterprises of different natures. In view of this, it is suggested that China's listed mining companies should strengthen their investment in ESG and emphasize on social responsibility and corporate governance; meanwhile, it is also suggested that regulators should look for regulatory clues based on the relationship between ESG performance and financial performance of mining companies.

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