The Study On Financing Structure And Performance Of China’s Pharmaceutical Manufacturing Listed Companies

Pharmaceutical manufacturing industry is not only an important industry to protect people’s livelihood, but also the national industrial policy priority areas of support. However, the pharmaceutical industry is capital and technology-concentrated with high risk and high investment, so the ability of financial intermediation is particularly important. Different way of financing determines the different financing structure, thereby affecting the company’s cost of capital and profitability, will have a profound impact on improving company performance. This paper selected samples of pharmaceutical manufacturing listed companies, aimed to discuss the impact of the company’s funding structure and financing behavior on the performance of corporate. After all, the paper has an important practical significance to protect the healthy development of capital market and improve the efficiency of resource allocation.This paper is divided into five chapters. The first chapter has expressed research background and significance. The second chapter is a summary of the theory of the financing structure and corporate performance, conducted a systematic review of the literature. The third chapter analyses the status of the pharmaceutical manufacturing industry in depth. Next is an empirical study in the fourth chapter, the paper select pharmaceutical manufacturing listed companies from 2008 to 2012 as samples. Then the thesis extract comprehensive scores of corporate performance from four aspects such as the profitability, operation, development ability and solvency as the dependent variable. At last, paper build the model from three perspectives, including the overall financing structure, financing term structure and sources of financing, then take a regression analysis to synthesis performance. The fifth chapter has drawn conclusions from empirical analysis and brings up some policy recommendations.According to empirical research, the paper draw the following conclusions:(1) The correlativity between asset-liability ratio of China’s pharmaceutical manufacturing listed companies and the company’s consolidated performance is not presented as the inverted U-shaped in accordance with the optimal financing structure theory, but is a U-shaped. And the whole, China’s pharmaceutical manufacturing listed companies are still in the stage of the first half of the U-shaped. The reason of the difference from the numerous studies is that in the past empirical research they measure performance as profitable indicators, but the article evaluates the performance ability from profits and other comprehensive index. (2) The current liabilities to total assets ratio in China’s pharmaceutical manufacturing listed companies show an inverse relationship with the company’s performance and long-term liabilities have the same character, but the latter is not significant as the current liabilities. (3) The endogenous financing have a positive effect on the overall performance, but bank loans are negatively correlated with the performance, which is also associated with the bank’s soft constraints relationship.