Influence of ESG Performance on Stock Repurchase Decision of the Pharmaceutical and Biological Industry

The practice of ESG in the pharmaceutical and biological industry is directly related to public health and social trust. The correlation mechanism between ESG performance and capital operation behavior has a stronger research necessity and practical significance than other industries. This paper takes China’s A-share listed companies in the pharmaceutical and biological industry from 2015 to 2024 as the research object to explore the impact of ESG on stock repurchases. The study found that the better the ESG comprehensive performance of Listed Companies in the pharmaceutical and biological industry, the more obvious their stock repurchase tendency, and the results were still robust after passing the endogenous test. The mechanism test found that the consumer confidence index was the intermediary variable, and ESG could promote stock repurchase by improving consumer confidence. Further heterogeneity analysis shows that ESG has a significant positive impact on stock repurchase in non-state-owned enterprises, while the impact is not obvious in state-owned enterprises.