Study On The Correlation Of Intellectual Capital And Business Performance Of Listed Biopharmaceutical Companies

Intellectual capital has been taken a much more significant role in the process ofcreating value for enterprises in recent years. By contrast, the contribution of materialcapital to business performance has been declined. Intellectual capital is the key element ofstrengthening competitiveness and achieving business objectives. At the same time, it actson the persistent high-speed development of enterprises and improves the managementstructure. Therefore, exploring and managing intellectual capital will be an important partof modern enterprises. Making the mechanism of intellectual capital to performance clearlycan help to find out more valuable data and information on financial management andoperating management so that resources can be used effectively.To start with, the essay introduces the research background and the literature review.Besides, it points out the significance of the research on the basis of analysis and evaluation.Secondly, the author states the related theories about intellectual capital and businessperformance, defining the meaning and constitution of intellectual, so does the biologicalpharmacy industry. After that, the essay analyzes the mechanism of three elements makingintellectual capital up----human capital, structural capital and relational capital----whichhave an effect on the business performance of listed biopharmacy companies. Then factoranalysis is used in debt paying ability, operation capacity, profitability, development abilityand some other financial index. Then obtain an aggregative indicator used as explainedvariable. Afterwards, the regression model is designed by seven measurements ofintellectual capital as explanatory variable. For empirical study, data from2010to2012oflisted biopharmacy companies are selected as samples. And put data in empirical tests to getan empirical regression result which can be used to explicit that the most effective factors toimprove business performance. The factors are the proportion of technical personnel, theadvanced educational scale, major proportion of customers and appropriate selling expense.Finally, on the basis of these results, the essay proposes some advice to promote thebusiness performance of biological pharmacy industry in view of paying attention tocultivating human capital, renewing structural capital and managing relational capitalrespectively.