An Empirical Research On The Effect Of R&D On Corporate Performance In Listed Pharmaceutical Industry

The pharmaceutical manufacturing industry affects people’s living and nationaleconomy, it’s a sunrise industry. Pharmaceutical manufacturing industry belongs tohigh technology industry, one of the biological medicine industry of developedcountries corporate governance level is higher, with the ability of bringing forth newideas and the ability of researching and developing independently, attaches greatimportance to R&D, and well into economic benefit, promote enterprise performanceimproved. Although the pharmaceutical industry in China is in the booming period, butit has a large gap with the international pharmaceutical industry, the differentgovernance levels exists in the companies, especially R&D level there is a huge gap,the level of research and development is one of the measure of high-tech industries.This paper is to study how the Chinese pharmaceutical manufacturing listedcompanies’ R&D investment makes positive influence on performance, and theinfluence is lagging. Through the study of scholars who are from home and abroad, weknow that the R&D is related to corporate performance. and corporate governanceinfluence on R&D investment and enterprise performance, however, the study of R&Dinput lag and study time is shorter. For pharmaceutical research and development timeis long, the demand is rigid, the input of R&D is large and so on, pharmaceuticalindustry will be in Shanghai and Shenzhen two city a-share listed companies as theresearch object, from2007to2013as the research range, using multiple regressionmodel, studies the intangible assets, development of the R&D expenditures andenterprise performance correlation and hysteresis, comparing the R&D under differentcorporate governance and corporate performance correlation and hysteresis, as well asthe relationship between the firm performance and fixed assets, current assets that thecondition to ensure the R&D spending.Study found that as R&D constitute the content of intangible assets anddevelopment expenditures on corporate performance is a positive role in promoting,and three years later the good influence will arise; Big company size, high proportionof outside directors, institutional shareholding enterprise R&D bigger and moreimportant for the promotion of corporate performance; As R&D spending to ensurethat the condition of fixed assets contribution to corporate performance was not significant, the liquidity that promotes and significantly lower than intangible assetsand development expenditures. Through the study referred to, this article suggestedthat the future of our country industry should expand its scale, reasonable play scaleeffect; the governance level in firms should be improved to make right decisions;Strengthen the ability of innovating independently to master the new technology.