Performance Study Of Listed Companies In Pharmaceutical Industry Based On Different Corporate Governance Structure

Pharmaceutical industry is a high-tech, high-input, high-yield sunrise industry in China and around the world, which has a strong sustainability of development and plays a very important role in national economic growth. However, under the context of economic globalization, the rapid development of pharmaceutical industry has led to people's concerns. In recent years, China has strengthened the reform of listed companies'governance structure. In particular, the split share structure reform began in year 2006 has resolved problems impeding development of the company and has a tremendous impact on corporate governance in the pharmaceutical industry.In this paper, I choose 66 eligible companies about Chinese pharmaceutical enterprises in Shanghai and Shenzhen Stock Exchanges between year 2006 and 2008 being used as sample, empirical researches on the relationship between key elements of corporate governance structure and consolidated performance are done by using software tools called EXCEL,EVIEWS and SPSS, the relations between the two are examined, the corporate governance problems that exist in pharmaceutical listed enterprises are found, and proposals on improving corporate governance structure are explored.This paper mainly divides into four parts:the first part is the introduction. This part has outlined the background and significance of the paper, the domestic and foreign documents summary about the relationship between corporate governance structure and the company performance, and introduces this article research ideas and technique roadmap. The second part is analysis of the status quo. This part analysis in depth the status of corporate governance structure and corporate performance in Chinese pharmaceutical listed companies, and identify the existing problems in pharmaceutical industry based on status of the split share structure reform and special background of development of this industry in recent years.The third part is empirical analysis part. Firstly, I has found the key factors affecting corporate performance and calculated the integrated performance rating with principal component analysis. Secondly, I choose samples and indexes about listed companies under the relevant assumption, and describe the present situation using the descriptive statistical method about Chinese pharmaceutical listed companies'governance structure and performance features. Finally, according to the above theory foundation, I construct the relational model about corporate governance structure and performance features on the regression analysis, and analyses empirical result.Based upon the above findings, this article discovered that The proportion of state-owned shares and The proportion of outstanding shares has positive effects on the corporate performance; The proportion of corporate shares has negative effects on the corporate performance. But the results indicate that both ownership concentration and executives pay has significant positive influence on the corporate performance. At the same time, the board size has negative effects on the corporate performance. End of this article, the purpose to put forward rationalization proposals is to drive pharmaceutical listed companies to formulate strategic development planning and improve business performance.