In alignment with China's “dual carbon” goals - peak carbon by 2030 and carbon neutrality by 2060, this strategy underlines the necessity for economic transmutation and advancement to realize more sustainable economic growth. Concurrently, it draws attention to the imperative of the green development philosophy and the significance of climate change. In light of these policy directives, more rigorous standards of environmental conservation and social responsibility are imposed on publicly listed companies, particularly those in the pharmaceutical manufacturing industry. The objective of this paper is to explore the synergistic effect of Environmental, Social, and Governance (ESG) factors and technological innovation on firm value in this context. This research is grounded on panel data from A-share listed pharmaceutical manufacturing companies surveyed over a decade - 2012 to 2021, incorporating 98 firms as the research sample. The findings reveal that: (1) there is a considerable positive correlation between a company's ESG factors and its value. This suggests an escalating interest from investors and the market in corporate social responsibility and sustainable development capacity; (2) technological innovation serves as a conduit, playing a partially mediating role, through which corporate ESG performance not only directly influences firm value but also indirectly boosts it by fostering innovation. The robustness test further validates our findings, demonstrating the reliability of the research outcomes. Advanced research indicates that the synergistic effect of ESG factors and technological innovation on increasing firm value is conspicuously significant in non-state-owned enterprises and those grappling with lower financing constraints. This suggests the role of ESG and technological innovation in enhancing firm value is more pivotal in specific contexts.
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