The Influence Of Venture Capital On The Post-IPO Performance Of Pharmaceutical Enterprises

In recent years,the scale of pharmaceutical manufacturing industry and the profit of pharmaceutical industry in China are developing at a high speed,so venture capital institutions begin to actively invest in the pharmaceutical industry,and venture capital has become an important force to promote the listing of pharmaceutical enterprises.However,the large-scale listing of pharmaceutical companies is accompanied by some problems,and many biomedical companies have experienced performance fluctuations after IPO.The impact of venture capital stock ownership on the performance of the invested enterprises is a matter of close concern in the current academic circles and the industry.A large number of studies on venture capital in the past believe that venture capital affects enterprise management,operation and development through equity investment,which will have a certain impact on enterprise performance.Therefore,the main purpose of this study is to analyze the impact of venture capital intervention on the performance growth of pharmaceutical companies after their IPOs.This paper narrows the vision of the previous research on venture capital,focusing on the pharmaceutical industry.In addition to the profitability and operational ability of common companies,it focuses on the innovation ability of pharmaceutical companies.It evaluates the performance indicators of pharmaceutical companies from three aspects: profitability,operational ability and innovative ability,and objectively and comprehensively draws a realistic operating situation of enterprises.In order to better explain the impact of venture capital on the performance changes of pharmaceutical companies before and after IPO,the explanatory variables of this paper choose the change degree of performance indicators in the first and second years after IPO compared with the performance indicators in the previous year.This paper chooses SMEs and GEM listed pharmaceutical enterprises as research objects,and chooses three performance perspectives,taking the existence of venture capital and the share-holding ratio of venture capital as core explanatory variables respectively,to study the effect of venture capital on the performance growth of pharmaceutical enterprises in the first and second years after IPO,and to avoid endogenous problems,to introduce instrumental variables,using two-stage least squares method to analyze the effects of the existence of venture capital and the proportion of venture capital on the growth of profit,operation and innovation performance of pharmaceutical enterprises after IPO.The conclusion is that venture capital has a certain impact on the performance of pharmaceutical companies after IPO.Specifically,in the first year after the IPO,the intervention of venture capital is conducive to the growth of profit performance,operation performance and innovation performance of pharmaceutical enterprises,and the higher the proportion of venture capital holdings,the more conducive to the growth of profit performance and innovation performance.In the second year after IPO,the intervention of venture capital is only conducive to the growth of innovation performance of pharmaceutical enterprises,and the impact of venture capital ownership on the growth of performance of pharmaceutical enterprises is not significant.Finally,it summarizes and analyses the relevant suggestions on venture capital intervention in the pharmaceutical industry,and summarizes the insufficiency of the paper.