Research On Effect Of Executives In Human Capital On Business Performance Of Listed Pharmaceutical Industry

The pharmaceutical industry is an indispendable component of the high-techindustry.competition among enterprises of pharmaceutial industry is becoming increasinglyfierce along with the development of the market. While corporate executives, who acting asan important and scarce human capital,has become one of the elements that affect the corecompetitiveness of enterprises. Such pharmaceutical industry executives human capitalfactors like educational backgroud, age, tenure, salary and number of stocks affect theworking ability and achievement attitude of executives, and thus have an impact on thedecision-making process and the effects of management of executives, and ultimately affectbusiness performance.In this paper,we conducted a empirical research on the relationship between companyexecutives’ human capital of the pharmaceutical industry and corporate performance based ondate from listed company of2012. Firstly, the paper analyzed the relevant theory of corporateexecutive human capital and corporate performance, and the research status quo fromdomestic and foreign scholars. Then established the relational model of executives humancapital and corporate performance in pharmaceutical industry. Combined with data fromChina’s A-share listed companies of the pharmaceutical industry, using factor analysis, thepaper obtained integrated enterprise performance data as replacement of corporateperformance. Then analyzed and tested the model by multiple regression analysis; the modelwas tested again by regression analysis after introducing ROE to substitute corporateperformance which finding that an integrated business performance factor more effectivewhen used to explainning corporate performance compared with ROE. The results showedthat:(1)education levelof the pharmaceutical industry executives from listed companies isrelatively high, and the educational level of executives and corporate performance ispositively correlated.(2) the pharmaceutical industry executives are in middle age averagely.the greater the age of executives, the better to promote enterprise performance.(3) therelationship between the length of the term from pharmaceutical industry executives andcorporate performance is not significant.(4) the level of executive pay in pharmaceuticalindustry influence firm performance littlely.(5) the impact of pharmaceutical industryexecutives shareholding to enterprise performance is not significant. Based on this conclusion,the article finally gives suggestions on how to improve human capital leves of executives aswell as overall level of performance of the pharmaceutical industry.