Research On R&D Efficiency Based On Corporate Governance

As a strategic emerging industry in China,the pharmaceutical industry has very obvious high-tech characteristics.Although the traditional Chinese medicine industry,as its market segment,has developed rapidly in recent years,it has been criticized for insufficient investment in research and development and low efficiency.With the promotion of the medical reform policy,the transformation and upgrading of the pharmaceutical industry is accelerating.Traditional Chinese medicine enterprises are also seeking to transform to innovative drugs and sophisticated generic drugs,which poses challenges to their research and development ability.In this case,the analysis of the research and development efficiency of enterprises in the traditional Chinese medicine industry has reference and reference significance for the improvement of the research and development ability of the whole industry and the realization of transformation and development.China Resources Sanjiu and Yiling Pharmaceutical are both leading enterprises in the TCM industry.Their total market value is similar,their R&D investment is high,and their star products are also competing in the same category market.Under the condition that the external influencing factors are basically the same,although the amount of R&D investment of China Resources Sanjiu is not much different from that of Yiling Pharmaceutical,the R&D efficiency of China Resources Sanjiu is poor.So this article,based on the perspective of corporate governance,taking China Resources Sanjiu as the main research object,joins Yiling Pharmaceutical for comparison,analyzes the corporate governance reasons leading to the poor R&D efficiency of China Resources Sanjiu,and puts forward corresponding suggestions for improvement.Firstly,by combing relevant literature,it is found that there are still a lot of disputes between domestic and foreign scholars on the study of corporate governance and enterprise R&D efficiency,and there is no clear conclusion on the relationship between various factors,so it is necessary to analyze the data of specific enterprises.Secondly,combined with Schumpeter innovation theory,principal-agent theory,and human capital theory,this paper analyzes the relationship between ownership structure,board structure and salary incentive and enterprise R&D activities.Then,using case analysis,according to the characteristics of the case enterprise R&D activities,comprehensive evaluation of enterprise R&D efficiency,and draw the conclusion: China resources keep on low efficiency of R&D inputs into outputs.The analysis shows that the state-owned equity nature of China Resources Sanjiu leads to the absence of owners,prominent principal-agent contradictions,lack of executive incentives and other problems.At the same time,the high concentration of equity leads to the actual lack of effective supervision of shareholders by the board of directors,the single compensation structure,the lack of equity incentive measures,and the lack of medium and long term incentive mechanism for senior executives and R&D personnel.Under the combined action of several corporate governance factors,senior executives of China Resources Sanjiu lack the enthusiasm to engage in high-risk R&D activities with uncertain returns,resulting in low R&D efficiency.To solve these problems,this paper also puts forward some corresponding suggestions for enterprises,including moderately reducing ownership concentration and introducing institutional investors;Improve the system of the board of directors and the board of supervisors;Optimizing the salary structure of senior executives and R&D personnel and increasing the proportion of performance salary can provide reference for other enterprises with R&D problems in the TCM industry to improve their corporate governance structure and improve their R&D efficiency.