The Impact Of The Policy Of Separation Of Medicines On The Stock Returns Of Listed Pharmaceutical Companies

Pharmaceutical enterprises are an important industries that guarantee social and people’s livelihood.They have the characteristics of high risk and high investment,and they are particularly important for policy responses.The pilots canceled 15% of the fee about drug premium,separated treatment from medicines,and reduced the cost of purchasing medicines in hospitals,which has an impact on the stock price of listed pharmaceutical companies,thus affecting stock returns.It has great practical implications to the pharmaceutical industry as well as investors of researching the impact of the separating drug sales from medical services pilots on April 8,2017 on the stock returns of listed pharmaceutical companies.It has theoretical significance for analyzing the policy effect of separating medicine from medicine.This paper selects the data of the listed companies from January 18,2017 to March 8,2017 as the estimation period and the data from March 9,2017 to May 9,2017 as the window period.To study the impact of the separating drug sales from medical services pilots on the stock returns of listed pharmaceutical companies and the effect degree of different sizes,analyzes 136 listed pharmaceutical companies through the event study and multiple regression analysis method.Through empirical research,the article came to the following conclusions:(1)For the full-sample listed pharmaceutical companies with separating drug sales from medical services pilots,during the event period,the Cumulative average abnormal returns is basically negative,which is bad news.(2)The policy of separating drug sales from medical services is a bad news for the large pharmaceutical companies,but bad news is not remarkable different.The smaller companies are more sensitive to the negative reaction of separating drug sales from medical services pilots,and the influence is prominent.(3)Separating drug sales from medical services pilots has shown negative effects for pharmaceutical companies listed in Shanghai and Shenzhen,but the performance has slightly different between two markets,and the reaction of the Shanghai stock market is more sensitive.