Research On The Impact Of R&D On Corporate Growth Of Listed Pharmaceutical Industry Companies

As the rapid development of global economy and science and technology, China’s enterprises also gradually realized that r&d activity is the only way to improve the core competence for enterprise. Pharmaceutical industry is the pillar one of national economy and it also belongs to one of high technology industry. The technological innovation which dominated by product research plays a important role for pharmaceutical industry. However, the research of the relationship between r&d investment and enterprise growth is not much, so we lack the support of the empirical research conclusion that whether r&d investment has an auxo-action for enterprise growth.The research of pharmaceutical industry plays a more important role in the area of developing industry. But in our country, the disclosure of the r&d spending is not mandatory. And this leads to much more difficult for our research on the relationship between r&d investment and enterprise growth in pharmaceutical industry. It affects not only the study of r&d investment in pharmaceutical industry but also the study of r&d investment in other industries. Thus, there is a significant theoretical and practical meaning for the study of r&d investment and enterprise growth.In this paper, I define the concept of the r&d investment and enterprise growth firstly. Secondly, by extracting the data of139companies from2010to2012, I do the descriptive statistics and preliminary analysis of r&d investment and enterprise growth in pharmaceutical industry. Then I do the empirical analysis of the impact of r&d investment on enterprise growth with sifting59pharmaceutical listed companies of177sample data. In the aspect of enterprise growth index selection and evaluation, I consult the taian database. And use five index that is development ability, profit ability, operation ability, debt paying ability, cash flow ability as a representation of enterprise growth. At the same time, select14relevant financial indicators as a comprehensive consideration of the enterprise growth. I get comprehensive index of enterprise growth in pharmaceutical industry listed companies by using factor analysis method to analyze14relevant indicators. Finally, I use total assets of logarithm, growth rate of total assets, financial leverage as control variable and do empirical analyzes of the effect of r&d investment on enterprise growth. The empirical results show that:the listed companies in our country medicine industry, the current r&d strength, research and development and technical personnel ratio is positively correlated with the enterprise growth, and through the test of significance. Current r&d strength and after a period of growth is positively related to relationship of enterprise, has passed the test of significance, that illustrate the impact of r&d investment on enterprise growth lag. While R&d investment in the current enterprise growth for the latter two is positively correlated, but do not pass the significance test, shows that r&d spending is short-term growth promoting effect of the enterprise. Total assets of logarithm, the growth rate of total assets and enterprise growth pass the test of significance. Financial leverage is negatively related to the enterprise growth and also pass the test of significance. Finally, base on the empirical results I put forward some suggestions which can promote our country enterprise growth, increase spending on research and development, improve the proportion of r&d and technical personnel, continuous investment in research and development, a regular basis for research and development personnel training, improve the r&d information disclosure.