Correlation Studies Between Pharmaceutical Manufacturing Industry R&D Investment And Enterprise Value

Investment in research and development is not only the basis to ensure the smooth progress of R&D activities and the key part of the realization of science and technology strategy, but also is the important way to obtain the ability of survival and development and acquire its own core competitive advantage.Therefore, research on R&D investment has been a key issue and a hot topic. In terms of the medicine manufacturing industry, promotion of production technology with production and carrying out of new drug by continuously large-scale R&D is the magic weapon for enterprise survival. As for high requirements of investment in research and development of the pharmaceutical industry, it is particularly important to study the R&D investment and enterprise value. It helps to deepen the existing theoretical research on research and development, provide information to support research and development work,then provide a decision-making reference for promoting enterprise value.In this paper, we select 42 pharmaceutical manufacturing enterprise listed in China’s Shanghai and Shenzhen who disclosure investment in research and development as the research object to make the research. To be specific, based on the current situation of domestic and foreign research on the value and R&D investment and the correlation theory, we combine the theoretical studies and practical studies. First, make descriptive statistics of the overall research and development situation in 42 pharmaceutical manufacturing enterprises from2009 to 2013.Then, treat R&D investment intensity and R&D investment per share as explanatory variables, select data indicators which can fully represent the value of the enterprise as explanatory variables from two aspects of enterprise financial value and market value, add control variables to establish the empirical model. Last, analyse the correlation of pharmaceutical industry R&D investment and enterprise value with multiple linear test, correlation analysis and regression analysis by using Excel and SPSS20.0.The empirical results show that: the medicine manufacturing industry R&D investment and enterprise value has significant correlation. Pharmaceutical industry R&D intensity and ROA has significant positive correlation, it also has significant positive correlation with Tobin Q.There is a negative correlation of R&D intensity and sales net interest rate and the rate of capital accumulation in a year, but there is significant positive correlation in most cases. The positive correlation has the lag effect in a certain extent, that is to say, R&D investment not only has influence on current, but also may affect the enterprise value of a two years after. What is more, the share of R&D investment and stock price confirmed positive correlation which hypothesis refers to.According to the research conclusion, we put forward the following suggestions: from the perspective of the government, the government should support and encourage the R&D activities in pharmaceutical manufacturing industry through a variety of channels. Standardize the information disclosure of enterprise development, and establish a unified platform for technology exchange information to help the enterprise to seek external support. At the same time, improve the relevant security system to prevent the facing R&D risk in the pharmaceutical manufacturing industry to a certain extent, exempt any menace from the enterprises. From the point of view of enterprises,pharmaceutical manufacturing enterprises need to establish a set of incentive mechanism innovation for the development of its own complete mechanism to help improving their sense of innovation. Actively establish their own medical technology R&D center, not concentrate short-term effect and ignore the R&D investment hysteresis impact on the enterprise value, but they should keep the investment of the research and development scientific and effective. In addition,the enterprises must stand in the strategic height to examine and make enterprise pharmaceutical R&D investment policy and strengthen the R&D investment in project management.