An Empirical Study On The Relationship Between Shareholding Structure And Business Performance Of Listed Pharmaceutical Companies In China

Shareholding structure is the basis of the governance mechanism of companies, while management efficiency is reflected in companies'operating performance; therefore, there is a close link between shareholding structure, governance mechanism and business performance. With the improvement of people's living standard and the promotion of medical system reform, listed Pharmaceutical companies develop so rapidly that they have become an important component of national economy. The sound development of listed pharmaceutical companies is not only an important issue of securities market, but also concerns the sound development of the whole national economy. Therefore, it is of important theoretical and practical significance to explore the relationship between the shareholding structure and business performance of listed pharmaceutical companies in China.In this thesis, we sampled 99 Pharmaceutical companies listed in Shenzhen and Shanghai and selected relative data of these companies from 2005 to 2008. Based on this, we constructed an additive DEA model to evaluate business performance of these listed Pharmaceutical companies and got the relative operating performance scores, which served as the measuring index of listed companies'business performance, we conducted an empirical analysis of the relationship between shareholding structure and business performance of listed Pharmaceutical companies with Panel data. We draw the conclusion: first, there isn't a correlation between the state-owned shares and business performance of listed Pharmaceutical companies in China; second, there is a conical relationship between the proportion of legal person shares and business performance in this industry; third, there is a positive relationship between ownership concentration and business performance in this industry; fourthly, there isn't a definite correlation between the degree of equity of checks and balances and business performance in this industry. So we put forward four pieces of advice to the present practice: first, Reasonable control the proportion of state-owned shares; second, Enhance the participation level of small shareholders on corporate governance; third, Ownership concentration should be kept properly; fourthly, enhance the potency dimension of Merger and Acquisition in Pharmaceutical Industry.