Research On Innovative Pharmaceutical Business Valuation Based On Intellectual Capital

With the development of the era of knowledge economy,the intellectual capital plays more and more critical role in corporate value,which means it's an essential factor that influence corporate value.In the field of business valuation,although some scholars have studied how to consider the impact of intellectual capital on the corporate value in the assessment process,but the complexity of the value creation process of intellectual capital makes it difficult to quantify the impact of intellectual capital on corporate value accurately.In the application of commonly used evaluation methods,The Cost Approach determines the value of the corporate by assessing the assets and liabilities in the balance sheet,but actually a large amount of intellectual capital is not reflected in the table;the Market Approach does not consider the difference between different companies' intellectual capital when choosing comparable companies and value ratios.In the Income Approach,the cash flow created by intellectual capital is difficult to quantify,and there is no accepted method that can measure the cash flow created by the intellectual capital and the cash ratio;the Real Option Approach treats the intellectual capital as an option,but not all intellectual capital has an option nature.Therefore,in the context that intellectual capital becomes an important factor in corporate value,it is necessary to construct an evaluation approach that incorporates intellectual capital into the scope of business value assessment.This paper first reviews the concepts and methods of corporate value assessment,the concept and composition of intellectual capital and how it affects corporate value.Moreover,this paper takes innovative pharmaceutical companies as research objects and it's based on the theory of intellectual capital pluralism,aiming to construct the intellectual capital evaluation index system from four dimensions: human capital,process capital,relational capital and innovation capital.The sample is taken from all the data of innovative pharmaceutical companies in 2013-2017,which is listed on the A-share market.Based on the data collection,descriptive statistics,correlation analysis and multiple regression analysis were carried out to construct an innovative pharmaceutical enterprise value evaluation model based on intellectual capital,and also how the model is used in enterprise value assessment is discussed.Finally,an innovative pharmaceutical company,Zhejiangyiyao as an example to be valued,using the intellectual capital-based innovative pharmaceutical enterprise value evaluation model and the Market Approach to evaluate its market value.Through the comparison of the accuracy of the evaluation results,it is found that,first of all,from the evaluation process,the evaluation index of the innovative drug enterprise value evaluation model based on intellectual capital is easier to obtain,and the evaluation process is not easy to be assessed by the appraisers.And the evaluation process is not easy to be influenced by the subjective factors such as the appraisers' knowledge reserve and professional judgment.Secondly,from the accuracy of the evaluation results,the accuracy of the innovative drug enterprise valuation model based on intellectual capital is higher than The Market Approach.The innovative points of this paper are as follows: Firstly,it's based on the existing research on the evaluation index system of intellectual capital,it combines with the characteristics of innovative pharmaceutical companies,adjusts and supplements the evaluation index system of intellectual capital,thus the intellectual capital evaluation index applicable to innovative pharmaceutical enterprises is established.Secondly,it considers the impact of intellectual capital on the corporate value in the process of evaluation and constructs an innovative pharmaceutical enterprise value evaluation model based on intellectual capital,which can be directly used for the evaluation of innovative pharmaceutical companies,and the accuracy of the evaluation results is quite high.The shortcomings of this paper are as follows: First,the research object is an innovative pharmaceutical company,so the enterprise value evaluation model constructed in this paper is only applicable to the evaluation of innovative pharmaceutical companies.Secondly,the evaluation model may be affected by stock market fluctuations since the dependent variable of the evaluation model is the market value of the enterprise,although the selected annual average market value reduces the influence of stock price fluctuation to a certain extent,it is still difficult to completely eliminate it.