The pharmaceutical industry contributes significantly to global healthcare by researching, developing, and producing medicines, therapies, and treatments that enhance and prolong human life. This research utilizes the annual data of 327 listed pharmaceutical manufacturing companies in China from 2015 to 2022 and conducted an empirical analysis on the impact of internal control on R&D investment and considered the mediating effect of financing constraints. The research results of listed pharmaceutical companies in China are as follows: (1) High-quality internal control can effectively promote R&D investments. (2) A more significant boost in R&D investment can be achieved by implementing internal controls that meet strategic and asset safety objectives. (3) Effective internal controls can alleviate financing constraints and promote research and development investment. (4) Large companies can significantly reduce financing constraints and promote R&D investment through high-quality internal control compared to small- and medium-sized companies. (5) With further research, high-quality internal controls can drive R&D investment by promoting profitability and maintaining good leverage levels. According to the empirical results, this research gives the relevant discussion and suggestions from the aspect of internal control key objectives.
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