Research On The Impact Of ESG Performance On Financing Costs In The Pharmaceutical Manufacturing Industry

Over the years,under the severe test of the global COVID-19 epidemic,ecological environment deterioration,abnormal climate and other phenomena,it is imperative to realize the harmonious coexistence of man and nature,promote the coordinated development of economy and environment,and build a common destiny of mankind.In recent years,the upsurge closely related to the green economy is the ESG investment concept,which is different from the previous green finance,responsible investment,environmental accounting information and other words.ESG is evolved from social responsibility investment,and is the product of the extension of sustainable development and other concepts.Its connotation is more rich and diversified,and is the result of a three-dimensional comprehensive evaluation of the environment,social responsibility,and corporate governance of listed companies in a certain period of time.This article selects the pharmaceutical manufacturing industry as the research object from the three-dimensional perspective of ESG.Specifically,in terms of the environment,the pollution problem in the pharmaceutical manufacturing industry is severe and must be taken seriously by relevant personnel.In terms of social responsibility,the pharmaceutical manufacturing industry is closely related to people’s livelihoods,and the fulfillment of its social responsibility is crucial to national health.It is incumbent on it to assume social responsibility.In terms of corporate governance,the industry itself faces many challenges due to its high risk,high investment,and high technology,which also makes it face many difficulties and limitations in financing.The good ESG performance of listed companies in the pharmaceutical manufacturing industry may also become their core competitiveness in showcasing good looks and enhancing stakeholder trust.Investors are more inclined to invest funds in companies with excellent ESG performance,and creditors are also more inclined to lend funds to companies with better ESG performance,and are willing to reduce the required capital reward fees.Therefore,ESG performance is reflected in the acquisition of equity The importance of debt financing in the process is also becoming increasingly prominent.In addition,the production characteristics of the pharmaceutical manufacturing industry determine that its operations cannot be separated from its own effective supervision,and the construction of internal control cannot be ignored.Enterprises with better internal control can have better control over the entire process of production,operation,disclosure,etc.Therefore,the effectiveness of internal control is likely to indirectly affect the quality of financial reports disclosed by enterprises in the industry to the outside world,the degree of enthusiasm for assuming social responsibility,and thus related to the results of ESG information evaluation,The impact on the level of financing costs cannot be ignored.This article is based on methods such as literature analysis,normative research,content analysis,and case analysis to study the correlation between ESG performance and financing costs in the pharmaceutical manufacturing industry,providing valuable data reference for pharmaceutical manufacturing enterprises to reduce financing costs in the future.Firstly,the article assumes the correlation between ESG performance and equity and debt financing costs to explore whether ESG performance can affect the costs incurred by enterprises in the financing process;Secondly,the article further investigated the impact of internal control on comprehensive financing costs and whether internal control has a certain moderating effect between ESG performance and comprehensive financing costs.Subsequently,research conclusions were drawn through statistical modeling: 1.There is a significant negative correlation between the ESG performance of listed pharmaceutical manufacturing companies in China and the cost of equity and debt financing;2.The higher the level of internal control,the lower the comprehensive financing cost;3.The level of internal control plays a moderating role in the negative correlation between ESG performance and comprehensive financing costs.Finally,the article proposes suggestions from the perspectives of listed companies,rating agencies,and government departments in the pharmaceutical manufacturing industry: firstly,pharmaceutical manufacturing enterprises should actively fulfill their environmental obligations,build a top-down ESG system,enhance ESG management capabilities,and prevent ESG risks;Secondly,rating agencies need to further refine the scoring modules,collect more comprehensive data,and optimize the existing rating system;Thirdly,government departments should provide sufficient policy support in ESG,help enterprises open green financing channels,and create a good ESG disclosure environment.