Research on the Relationship Among Governance Structure, R& Investment, and Performance of Pharmaceutical Enterprises

Abstract

"To study the relationship between the governance structure of the pharmaceutical enterprise and the input intensity of R&D investment, and to check the lag effect of R&D input on the performance of the enterprise. The data of the balanced panel of 133 medical-listed enterprises from 2009 to 2016 were taken as samples, the regression analysis was performed by using the STATA13.0 software. 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 R&D investment has gradually changed from significantly negative to significant positive. 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 innovative R&D."