Research On The Relationship Among R&D Investment,Corporate Governance Level And Corporate Financial Performance

The Nineteenth People's Congress Report clearly pointed out that speeding up the construction of an innovative country is one of the six major tasks of economic system of our country's modernization,and the most important factor of a innovative country is the enterprise innovation.Our" 13th Five-Year" development program will once again set the pharmaceutical industry as a national strategic industry.However,the enterprise technology innovation event will inevitably involve the problem of corporate governance.In this paper,we construct the pharmaceutical industry sample firms corporate governance index(noted as CGI)and use the index to compare the comprehensive quantification of different companies in the same industry.This paper has following intentions:helping company clarify how to manage R&D activities t more effectively,helping investors to distinguish how does the listed company in the pharmaceutical industry balance between the long-term sustainability and the short-term financial performance,as well as providing government with reference on how to make decisions on the target of launching the directed subsidies and policy support.In this paper,we choose China's pharmaceutical industry listed companies to be our study object and select the panel data of the year 2012 to 2017,set up the empirical model and,in order to explore the relationship between R&D investment and corporate performance,and to further explore whether and how the level of corporate governance as a moderating variable will influence the relationship between the two.The results show that in the pharmaceutical industry,R&D investment has a significant positive correlation with financial performance.Additionally,Corporate governance level plays a positive moderating role in the relationship between R&D expenditure and financial performance.At the end of this paper,policy suggestions are put forward in order to combine the empirical analysis with the practical application.