Study On The Impact Of Cash Dividends On R&D Input And Innovation Performance Of Pharmaceutical Enterprises

At the beginning of 2020,COVID-19 swept across the country,and the pharmaceutical industry with medical devices and pharmaceuticals as its main direction came into public view.In addition to the impact of the epidemic,the pharmaceutical industry,which is now facing serious challenges from technological progress,social development and an ageing population,has been given great potential for growth.At the same time,continuous product research and development and innovation is also the key to maintain the pharmaceutical industry enterprise market competitive position.When investors decide to invest in the pharmaceutical industry,then comes the issue of dividend distribution.As an important form of dividend distribution of listed companies,cash dividend has an important impact on the whole company’s operation.Based on this,this paper studies the impact of cash dividends on R&D and innovation of listed companies in the pharmaceutical industry.On the one hand,it hopes to provide suggestions for listed companies to formulate dividend policies,and on the other hand,it also provides guidance for the government.In this paper,four sub-sections of chemical pharmaceutical,biopharmaceutical,Traditional Chinese medicine and medical device,which have large r&d and innovation demands in the A-share pharmaceutical sector from 2012 to 2020,are selected as research samples.Based on relevant literature such as cash dividend and influencing factors of R&D and innovation,the influence paths among the three are analyzed and A set of competitive assumptions are proposed.The fixed effect model and random effect model are used flexibly for empirical analysis.The results show that there is a significant negative correlation between cash dividend and R&D investment and innovation performance of pharmaceutical enterprises.In addition,this paper also found that due to the different nature of property right of enterprise financing of different treatment,non-state pharmaceutical companies cash dividend on its level of r&d and innovation output performance of the negative relationship is more significant,while state-owned pharmaceutical companies cash dividend level of r&d and innovation output performance and no significant effect.Further considering the time lag effect,this paper finds through empirical research that the current cash dividend of pharmaceutical companies has a more obvious impact on r&d innovation activities one year later.This paper deeply analyzes the relationship between cash dividend and R&D investment and innovation performance of Pharmaceutical companies in China from different perspectives,providing reference value for pharmaceutical companies to carry out cash dividend and R&D innovation activities reasonably.