Research On The Impact Of Pharmaceutical Manufacturing Enterprises ESG Performance On Debt Financing Costs

ESG is the acronym of the three English words Environmental,Social and corporate Governance.Since it was proposed in the 1980 s,ESG has been gradually accepted and promoted in western economic society.Although ESG related research in China started relatively late,the attention and recognition of ESG from all walks of life are gradually increasing.The industry characteristics of pharmaceutical manufacturing industry coincide with the three core concepts of ESG.First of all,from the environmental point of view,the pharmaceutical manufacturing industry belongs to the "listed companies environmental information disclosure guidelines"(draft)listed in the sixteen heavily polluting industries,by the attention of all sectors of the society,the industry is required to pay attention to environmental protection;From the perspective of social responsibility,the pharmaceutical manufacturing industry due to the special attribute of the industry,is related to the people’s health,people’s health is one of the important people’s livelihood in our country,which requires the pharmaceutical manufacturing industry must bear social responsibility;From the perspective of corporate governance,the influence factors of pharmaceutical manufacturing industry by the state macro-control,to seek development and progress in the industry,company governance is crucial,and "high investment,high risk,high return and high technical requirements" of the industry status quo,makes our country medicine manufacturing enterprise financing has been difficult to fully meet the requirements.Based on this,this paper selected topic based on the impact of ESG performance of pharmaceutical manufacturing industry on debt financing cost,in order to provide some valuable reference information for pharmaceutical manufacturing enterprises to reduce the debt financing cost,and enrich the related theoretical research on ESG in China.This essay adopts literature research,comparative analysis,case analysis and empirical analysis method are studied,such as selection of 2018-2021 a-share market in our country medicine manufacturing industry listed companies as the research object,analysis of the size of the enterprise heterogeneity,and the impact of time lag effect,consider new crown before and after the outbreak of the macro economic environment changes,Through descriptive statistical analysis,correlation analysis,regression analysis and robustness test,the following research conclusions are drawn:(1)ESG performance of pharmaceutical manufacturing enterprises is negatively correlated with the debt financing cost of enterprises,that is,when ESG performance of pharmaceutical manufacturing enterprises increases,the debt financing cost of enterprises will decrease.This effect was more pronounced before the pandemic than after it.(2)ESG performance of pharmaceutical manufacturing enterprises has a lag effect on debt financing cost.In the short term,it may be influenced by prospect theory(prospect theory).When the ESG performance of enterprises improves,the debt financing cost of debtors will decrease.However,in the long run,when the enterprise’s debt financing cost is reduced to a certain extent,creditors will produce loss-type results that are lower than the expected value,leading to the rise of the debtor’s debt financing cost.(3)The ESG performance of stateowned pharmaceutical manufacturing enterprises has a more significant impact on debt financing cost than that of non-state-owned pharmaceutical manufacturing enterprises.That is,the ESG promotion of state-owned pharmaceutical manufacturing enterprises has a more obvious effect on the reduction of debt financing cost than that of non-state-owned pharmaceutical manufacturing enterprises.(4)The impact of ESG performance on debt financing cost of large pharmaceutical manufacturing enterprises is more significant than that of small and medium-sized enterprises.That is to say,the reduction effect of ESG on debt financing cost of large pharmaceutical manufacturing enterprises is more obvious than that of small and medium-sized pharmaceutical manufacturing enterprises.Finally,according to the research conclusion,some suggestions and prospects are put forward.