A preliminary study on the impact and its mechanism of pharmaceutical regulation on the firm performance / 中国药学杂志

ABSTRACT

OBJECTIVE: To study the impact and its mechanism of pharmaceutical regulation on the firm performance. METHODS: To make the multiple regression analysis with the pharmaceutical regulation intensity as independent variable, profit rate as dependent variable, R&D innovation and firm investment as intervening variable, based on the pharmaceutical industry data of China. RESULTS: The relationship between the pharmaceutical regulation intensity and profit rate is significantly positive correlation, for which the R&D innocation plays a role of mediation. CONCLUSION: Pharmaceutical regulation stimulates the R&D revenue and enhances technical innovation, and thus the innovation achievement enhances the firm performance. The increase of firm performance brought by innovation compensates the drop by regulation cost.