The Comparative Study On The Factors Influencing The Mode To Entry Capital Market Of Changshengshengwu And Wanfushengwu

The pharmaceutical industry is closely related to human health and is a typical rigid industry.In our country,the development of pharmaceutical industry has a good prospect with opportunities and challenges.The pharmaceutical industry has a high demand for funds.With the rapid development,the competition among pharmaceutical enterprises is becoming more and more violent.In order to improve its competitiveness and further development,Pharmaceutical companies must increase its investment on new techniques.Many Pharmaceutical companies may get in trouble on the process of capital accumulation.It is particularly important for them to turn to external financing.The main ways of financing enterprises in China are: lending to banks and other financial institutions,issuing bonds,listing and financing.In recent years,the bank’s control of the risk is becoming more and more strict.Medical companies have large risks on investment,as a result,it is difficult for them to obtain loans from banks and other financial institutions.The conditions of Chinese enterprises to issue bonds are also very strict.In this case,listed financing has become the most appropriate way for the financing of the pharmaceutical companies.At present,the way of listing is divided into two ways: direct listing and indirect listing in our country.The way of listing has great significance for the successful listing of enterprises.First of all,This paper introduces the current development and financing needs of China’s pharmaceutical industry,then establishes the necessity of listing and financing in pharmaceutical enterprises.On this basis,the current market selection of listed has been combed.As a sample,influencing factors are established by using factor analysis and logistic regression model to determine.We selected the Changsheng Biological company which is indirectly listed and Wanfu Biological company which is directly listed,we analyzed the influence factors of the indirect listing between Changsheng Biological company and Wanfu Biological company.The comparative results shows that low debt paying ability,low operation quality,less investment on new products,less government grants,the failure on listing in Hong Kong,and many other problems left by history prompted the selection of indirect listing.For Wanfu Biology company,better debt paying ability,better operation quality,enough investment on new products and enough support from local government contributed to the selection of direct listing.Finally,combined the case analysis,we put forward some suggestions for the companies which are going to list in future in view of improving management quality,understanding the characteristics of different ways of listing,paying more attention on current capital market environment,capital market system and regulations.