Factors Of Bio-pharmaceutical Industry Under The Corporate Governance Perspective Based On EVA

The Twelfth Five-year Plan proposes to cultivate and develope strategic emergingindustries. The government will give policies support and guidance, which provides a goodpolicy to support the rapid development of bio-pharmaceutical industry. At this point, it’sguding significant practically to explore the impact of corporate governance on firm valueand to further improve the corporate governance, this paper will study biological medicinecompany governance based on EVA index, which is the foundation of relevant governmentdepartments to formulate a reasonable policy.Firstly, according to the related literature data, this paper will comb the application ofEVA index in the field of listed companies at home and abroad and the correlation ofcorporate governance and corporate value.Then to analyze the definition and thetheoretical basis of corporate governance and to elaborate the the EVA value evaluationmethod comprehensively. Secondly based on GTA database, sharp thinking, the paper willmake empirical analysis about the impact of corporate governance and EVAS. To draw aconclusion from the research: the ownership concentration is inversely proportional toEVAS value. Blockholders and EVAS is inverted "U" shaped relationship. Institutionalinvestors are conducive to enhancing the value of the company. Executive pay is moreincentive than executive shareholding in Chinese listed pharmaceutical companies.Compared with the theoretical analysis, independent directors, board of supervisors, etcalso have very big difference. According to the above empirical results, we propose thefollowing policy recommendations: to develop institutional investors; to optimize thestructure of the board and to improve the quality of decisions; to improve managementincentive mechanism; to moderately diversify shareholding and to perform theimplementation of equity checks and balances.