A Study Of The Impact Of Environmental Regulation On Firm’s Business Operations

With the accelerating process of population aging,China has become the world’s largest supplier of APIs and the second largest pharmaceutical consumer market after the United States.The total industrial output value of the pharmaceutical industry has maintained a rapid growth trend.While promoting the development of GDP,as one of the 12 industries that have been included in the national environmental protection plan,the environmental issues brought about by the pharmaceutical industry have also attracted people’s attention.A series of environmental control policies have followed.In particular,in the Beijing-Tianjin-Hebei region where fog and haze occur frequently,measures such as production restrictions and production suspensions imposed on pharmaceutical companies have a negligible impact on the normal production and operation of enterprises.This paper uses the Beijing-Tianjin-Hebei region as an example to study the impact of environmental regulation on pharmaceutical manufacturing companies.After summarizing the development process of environmental regulation in China,the article selected samples of Beijing-Tianjin-Hebei medical manufacturers listed before 2013 and used the event research method to study the fluctuation of stock prices under the environmental control caused by the APEC meeting in 2014.In order to analyze the impact of environmental regulations on the business status of the company,the article compares the financial indicators of pharmaceutical manufacturing companies in the Beijing-Tianjin-Hebei region and pharmaceutical manufacturing companies in other regions from 2011 to 2017 from the following four aspects: Profitability,operational ability,growth ability,solvency.Through the above analysis,the article draws the following conclusions:(1)Environmental control has an inhibitory effect on the stock price of Beijing-Tianjin-Hebei pharmaceutical manufacturing enterprises.(2)Environmental regulations have a negative effect on the performance of Beijing-Tianjin-Hebei pharmaceutical manufacturing companies.(3)China’s environmental regulations are getting more and more powerful.Based on the above conclusions,the article concludes with suggestions on how current environmental regulatory policies should be improved and how companies should respond to high environmental pressures.