Research On Safety Investment And Economic Benefit Of Coal Listed Companies In China

The coal enterprises’ safe production problem is an important issue relatedto China’s energy supply of the national economy. However, in China, the currentsituation of safe production of coal enterprises is still grim, the total amount of coalenterprises’ accidents remains high, serious accidents occur frequently. In brief, thissituation is mainly due to a serious shortage of coal enterprises’safety investment anda lack of understanding of the relationship between safety investment and economicbenefits. By studying the two-way relationship of them based on the relevant data, thepaper wants to draw the attention of relevant authorities and coal companies aboutsafety investment and make coal enterprises’ production and management activities ina safe and orderly manner.Since profits reflect the enterprises’ economic benefits, the paper takes the safetyinvestment and profit as variables to discuss their relationship and rule fromtheoretical and empirical view. In theory, based on reading and sorting relatedliterature, the paper analyzes the basic theory and situation of coal enterprises’ safetyinvestment; In the empirical aspect, the paper selects18coal listed companies’ sampledata of12years, using the unbalanced panel data regression model to make analysis ofthe relationship between safety investment and profit, the conclusion includes twopoints: On the one hand, enterprises’ safety investment can pull the growth of profit inthe long term, and one period lagged safety investment has greater impact than thecurrent safety investment has on profit that proves the safety investment’s hysteresis.On the other hand, Profit also has positive effect on safety investment, the abovecontent suggests that there is a long-term equilibrium relationship between the two. Atlength, the paper puts forward some suggestions of increasing safety investment incoal enterprises from the macro and micro aspects.