The Influence Factors Of China’s Pharmaceutical Industry Listed Company Performance Research

The pharmaceutical industry is an important industry of national economy and people’s livelihood, and is concerned by the majority of consumers; It is a best investment choice which has the reputation of "never fading sunrise industry", so the broad masses of investors pay close attention to the status of the its development; It is also the key planning industry in the "twelfth five-year" plan, concerned by the government. It seems that the development of the pharmaceutical industry has become the focus of the whole society. Because of pharmaceutical listed companies including the key players of the pharmaceutical industry, the listed companies can reflect the main development of the pharmaceutical industry. Therefore, the listed companies’performances of pharmaceutical industry are the focus to people from all walks of life. To improve the performance of listed companies, it must be clear that what kind of factors is the main reason of its development and in which way do the factors affect the performance. Therefore, the research on the influence factors of the corporate performance of listed companies in pharmaceutical industry is significant.In theory, the influence factors of corporate performance include internal factors and external factors. In the current researches, it has much study on the internal factors of the listed company’s performance, but the researches on the impact of external factors on corporate performance are rare. Therefore, this paper attempts to comprehensively research the internal factors and external factors which influence the performance of listed company in the pharmaceutical industry of our country.First of all, based on the related theory and the characteristics of the pharmaceutical industry in our country, this paper analyze both internal and external factors affecting the performance of listed companies in China and its influence path, and put forward relevant assumptions; Secondly, with179pharmaceutical industry listed companies in two trading markets of Shanghai and Shenzhen as samples, and with tobin Q, return on total assets, return on equity as a corporate performance indicators, this paper set up an unbalanced panel model in2003-2012, and obtain the regression results by ordinary least squares regression; Thirdly, the article discusses the endogeneity of the ownership structure variables and executive equity incentive mechanism, then select tool variables, and inspect the endogenous variables by means of comparison and analysis, it is concluded that executives equity incentive variables is endogenous; Finally, this paper regress by instrumental variable method, and interpret the economic meaning of the regression results, and conclude the influence direction and degree of influence of various factors.Through the research, this article concluded that the important influence factors of the performance of China’s pharmaceutical industry listed companies include equity balance degree, the board size, the condition of centralized management, incentive levels, financial leverage, per capita income level, social insurance level, the degree of ageing, medicine and medical equipment import and export company level, growth, the company size, company risk, the first industry, etc., different influence factors impact corporate performance in different ways and different directions.Compared with the previous studies, this paper mainly has the following innovation in the research perspective:1. Most previous research of the factors of performance of the company influence consist them as exogenous variables, systematic research on the influence factors of corporate performance from the perspective of endogenous literature is less, which may lead to research conclusions existing bias errors. This paper tries to consider the influence factors of corporate performance based on endogenous theory to improve the accuracy of estimates and reduce the bias research conclusion. Naturally perspective, this paper also consider the financial performance and market performance factors that influence the performance and get some new conclusions compared with previous studies, it is the further research on the existing.2. Previous research mainly study on the the relationship between corporate performance and the external factors, but there are few research on the external factors which influence corporate performance. This paper bring in industry factors and external factors, comprehensively considering internal factors, finding that the influence of external factors and industry factors on the performance of the company.