Research On The Impact Of Ownership Concentration On The Performance Of Listed Companies In China's Pharmaceutical Industry

The ownership structure is the foundation of the corporate governance mechanism,and the company's operating performance has an extremely strong internal relationship with the efficiency of its governance,so there is a close relationship between the ownership structure,the governance mechanism and the performance of the company.With the improvement of people's living standards and the implementation of the reform of the medical system in China,the listed companies in China's pharmaceutical industry have also developed rapidly,and have become an indispensable part of our national economy.The healthy development of the listed companies in the pharmaceutical industry is not only an important issue in the securities market,but also closely related to the vigorous development of the whole national economy in China.And the ownership concentration is an important part of the ownership structure,so it is of theoretical and practical significance to study the relationship between the ownership concentration and the operating performance of the listed companies in the pharmaceutical industry.In order to study the impact of equity concentration on the performance of the listed companies in the pharmaceutical industry,this paper collects and collates the annual reports of 81 listed companies of A shares of A shares in Shanghai and Shenzhen for 4 years(2013?2016).The literature induction and empirical analysis are adopted.First,the literature of the research on the relationship between listed companies and equity concentration is reviewed,and then the data are summarized.After that,in order to better study the relationship between them,the corresponding model was established,and ROE was used as an explanatory variable,the first big shareholder shareholding ratio(CR1),the first five shareholders' shareholding ratio(CR5)and the herfen Dahl index(H5)as the explanatory variables and the asset liability ratio.(DAR),company size(SIZE)and corporate growth(GROW)as control variables to study the relationship between the ownership concentration of the listed companies in the pharmaceutical industry and the company performance.In order to ensure the reliability of the research conclusions,this paper uses earnings per share(EPS)as an explanatory variable to make a robust test.The conclusion is that the first largest shareholder shareholding ratio(CRi)and the herfen Dahl index(H5)are positively related to the performance of the listed companies in the pharmaceutical industry.Finally,the conclusion is drawn and some policy suggestions are put forward to improve the performance of Listed Companies in pharmaceutical industry.The main suggestions are as follows:first,to maintain the ownership concentration of the pharmaceutical company properly;secondly,to carry out the corresponding equity incentive for the managers;then,to establish an effective external supervision mechanism;finally,to improve the internal and external governance environment.As long as we do the above,we will surely improve the performance of the pharmaceutical industry.