| The pharmaceutical industry has become a key industry in energy conservation and emission reduction due to its complex manufacturing process,low utilization rate of raw materials and large emission of three wastes.The 19 th National Congress of the Communist Party of China proposed to build a beautiful China and resolutely fight the battle of ecological and environmental protection.Based on this,enterprises must quickly find the balance between profit maximization and ecological and environmental protection.Under this background,it is particularly important for enterprises to increase investment in environmental protection to improve their own economic benefits.This paper starts with this research hotspot to explore the impact of enterprise environmental protection investment on financial performance.Firstly,combined with sustainable development theory,social responsibility theory and stakeholder theory,this paper combs the impact of enterprise environmental protection investment on enterprise performance.Then it analyzes the overall development status of China’s pharmaceutical industry,including the scale of the pharmaceutical industry,environmental protection investment and environmental governance level.It is found that although the environmental protection investment of the pharmaceutical industry has increased in recent years,due to the rapid development of the pharmaceutical industry and the pressure of environmental protection cost,the investment in environmental protection of pharmaceutical enterprises is still insufficient to significantly reduce the speed of pollutant emission,The environmental governance efficiency of the whole pharmaceutical industry is not high.Therefore,the environmental protection investment of pharmaceutical enterprises needs to be strengthened.Secondly,this paper selects KL pharmaceutical as a case enterprise,takes its environmental protection investment amount from 2010 to 2020 as the independent variable（X）and the return on net assets as the dependent variable（Y）,and uses Granger causality test to verify the relationship between environmental protection investment and financial performance.The test results show that the enterprise’s environmental protection investment is the reason to improve the return on net assets when it lags behind for two periods.In order to further explore the impact mechanism of environmental protection investment on financial performance,after in-depth analysis of KL pharmaceutical,it is found that: on the one hand,the good environmental image established by environmental protection investment promotes the relatively close relationship between the government and KL pharmaceutical,which makes it obtain a large amount of government subsidy funds.After the government subsidy funds flow into the enterprise as a free fund,it reduces the debt repayment risk of KL pharmaceutical and enhances the debt repayment ability of the enterprise;On the other hand,the increase of environmental protection investment can promote the technological innovation of enterprises,which can reduce the cost of KL pharmaceutical industry and increase the profits of enterprises;In addition,after the investment in environmental protection,the public’s confidence in products will be increased,and the customer satisfaction will be improved,which will not only increase the operating income of enterprises,but also reduce the difficulty of new products entering the market and enhance the development ability of enterprises;In addition,the social and environmental reputation improved due to the increase of environmental protection investment has enhanced its market competitive advantage,expanded its market share,consolidated the core competitiveness of enterprises and improved the overall operating ability.In conclusion,environmental protection investment can promote the financial performance of enterprises.Finally,in order to improve the environmental protection investment of China’s pharmaceutical industry and KL pharmaceutical industry,this paper puts forward relevant suggestions. |
PDF Full Text Request