The Relationship Between Capital Structure And The Performance Of Pharmaceutical Enterprises In China

The pharmaceutical manufacturing industry is a high-tech industry in China,which occupies a high position in the national economy.The pharmaceutical industry has made great progress in the new medical reform,but many problems have been exposed during the rapid development.As a capital and technology intensive industry,the product characteristics of the pharmaceutical industry make the industry regulation very strict.And the pharmaceutical industry has the characteristics of high investment,high return,high risk and so on.The R & D investment intensity of China's pharmaceutical industry is low,the financing problem is prominent,and the capital structure of listed companies is different.The different capital structure of a company may be caused by the different ways of financing.The capital structure further affects the performance of the enterprise through the cost of the enterprise.At present,there are few researches on the relationship between the two in the pharmaceutical industry and the conclusions are different.Therefore,it is of great significance to study this topic.This paper first reviews relevant literature and expounds the theory.Through the analysis of relevant theories,the theoretical mechanism between the two is established,and the theoretical model is established with reference to the previous research.Then,according to the current development of the pharmaceutical industry,the specific situations of the three industries of chemical pharmacy,traditional Chinese medicine and biological pharmacy were studied.We select the quarterly data of 62 listed companies from the first quarter of 2013 to the fourth quarter of 2018 to makes an empirical analysis of their relationship.Our analysis shows that China's pharmaceutical industry has the characteristics of low asset liability ratio and high short-term current liability ratio.Then,our paper puts forward research hypotheses and establishes empirical models.By establishing the panel threshold regression model,we conclude that there is threshold effect and optimal capital structure in chemical pharmaceutical industry,and there is a nonlinear relationship between capital structure and enterprise performance.There is no threshold effect in traditional Chinese medicine and biopharmaceutical industries,which may be caused by the frequent introduction of industrial policies and the reform of pharmaceutical industry.The robustness test also confirmed the basic regression results.This paper also explains the problem of endogeneity.Finally,four policy Suggestions are put forward based on the empirical results.