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Frontiers in Medical Science Research, 2019, 1(1); doi: 10.25236/FMSR.100102.

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


Mi Xue1, Feng Guozhong2

Corresponding Author:
Mi Xue

China pharmaceutical university Nanjing, Jiangsu 211198, China


Objective: 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. 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 R & D investment 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 innovative R & D.


Pharmaceutical enterprises; corporate governance; Investment in R & D; Enterprise performance; Hysteresis effect

Cite This Paper

Mi Xue, Feng Guozhong, Research on the relationship among Governance structure, R & D Investment and performance of Pharmaceutical Enterprises. Frontiers in Medical Science Research (2019) Vol. 1: 14-31.https://doi.org/10.25236/FMSR.100102.


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