An Empirical Study On R & D Investment Of Listed Companies In China 's Pharmaceutical Industry

Modern enterprise core issue is the ownership structure of governance, which is mainly due to China’s market economic system under the background of increasingly mature, domestic and gradually establish a modern enterprise system and perfect. The accompanying, the research to issue of the structure for corporate equity in the academic has become more and more. However, such studies focused on exploring the relationship between ownership structure and corporate performance, corporate value. At the same time, R&D investment as a corporate strategic investment reflects the ability of future long-term development of a company. Thus causing the academic attention, but the research on R&D investment is focused on innovation and efficiency, few researchers has studied the combination of the corporate ownership structure and the R&D investment.Due to increased R&D investment for the formation of the core competitiveness of enterprises is important, so that the article will examine the relationship between ownership structure and R&D investment. The author has hope to provide a reference for optimizing the structure of corporate ownership to increase R&D investment. Based on the above considerations, the paper firstly has carried out the comprehensive collation of previous ownership structure as well as on R&D investment in the history of literature. In this paper, the author has taken the corporate contract theory and modern corporate agency theory as the theoretical basis, in order to analyze the ownership structure for the impact of R&D investment. Thereby setting hypothesis, the paper has carried out an extensive collection of sample data and established an empirical model, finally the author has made a number of suggestions.In order to eliminate differences industry factors, taking into account the relevant data readily available, this paper choose our 186 listed companies in the pharmaceutical industry, 2007-2013 data as the study sample. The variables in the model, the paper has taken the R&D intensity(ie R&D expenditure / total assets) as the dependent variable. In this paper, the author has taken corporate ownership concentration(ie the ratio of the largest shareholder of the enterprise) and corporate equity balance degree(ie, the ratio of the second to the fourth largest corporate shareholders / the ratio of the largest shareholder of the enterprise) as explanatory variables. Meanwhile, in order to enhance the persuasive model, this paper chooses three aspects of control variablesthat corporate profitability, capital structure and cash flow.In this paper, the author has analyzed the equity ownership concentration and balance degree, in order to investigate the influence of corporate ownership structure for its R&D investment intensity. Firstly, using SPSS statistical software, the ratio of the largest shareholder companies and their R&D intensity were analyzed separately. Secondly, according to the theoretical assumptions, the stake of the enterprise and the largest shareholder of the square cube were added to the model. After the increase in the selected control variables, the author has analyzed enterprise ownership concentration effects on their R&D investment intensity. Then, the author has used the same mode of analysis to test the relationship between the equity balance of companies and the strength of their R&D investment. Finally, we add all these variables to be unified analysis.After the above theoretical discussion and empirical analysis, this paper has made a number of conclusions. As described below, firstly, with the improvement of corporate ownership concentration, and its R&D intensity increased and then decreased again after showing an upward trend, similar to the "N" shaped cubic curve. Secondly, the relationship between the degree of corporate equity balance and its R&D intensity has show the positive linear relationship. That is the number of companies holding the second to the fourth-largest shareholder of the company and a number of the largest shareholder ratio the greater the degree of its R&D investment will increase. Finally, combined with the situation of China’s innovation-driven strategy, based on the conclusions of the study, the actual has made a number of suggestions in order to be helpful.