Research on the relationship among Governance structure, R & D Investment and performance of Pharmaceutical Enterprises

Abstract

To study the relationship between the governance structure and the input intensity of R & D investment of pharmaceutical enterprises, and to check the lag effect of R & D input on the performance. Methods: The data of the balanced panel of 133 medical-listed enterprises from 2009 to 2016 were taking as samples, the regression analysis was performed by using the STATA13.0 software. Results: In the aspect of the ownership structure, the state-owned control has a negative effect on the R & D investment intensity, and the equity concentration degree and the equity balance degree are positive. In terms of the governance of the board of directors, the proportion of the two-level and independent directors is positively affecting the strength of R & D and the scale of the board of directors has a negative effect. In that case of executive motivation, the share power incentive and salary incentive do not play the desired positive role. The lag effect of R & D investment on enterprise performance has verified. With the passage of time, the relationship between R & D investment and enterprise performance has gradually changed from significant negative to significant positive. Conclusion: Based on the research results, some suggestions are put forward to provide empirical evidence for optimizing the internal governance structure of pharmaceutical enterprises and improving the efficiency of R & D.