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Original Article
- Impact of Corporate Governance on Research and Development Investment in the Pharmaceutical Industry in South Korea
- Munjae Lee
- Osong Public Health Res Perspect. 2015;6(4):249-255. Published online August 31, 2015
- DOI: https://doi.org/10.1016/j.phrp.2015.07.003
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- 18 Download
- 4 Crossref
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Abstract
PDF - Objectives
The purpose of this study is to analyze the influence of the corporate governance of pharmaceutical companies on research and development (R&D) investment.
Methods
The period of the empirical analysis is from 2000 to 2012. Financial statements and comments in general, and internal transactions were extracted from TS-2000 of the Korea Listed Company Association. Sample firms were those that belong to the medical substance and drug manufacturing industries. Ultimately, 786 firm-year data of 81 firms were included in the sample (unbalanced panel data).
Results
The shareholding ratio of major shareholders and foreigners turned out to have a statistically significant influence on R&D investment (p < 0.05). No statistical significance was found in the shareholding ratio of institutional investors and the ratio of outside directors.
Conclusion
The higher the shareholding ratio of the major shareholders, the greater the R&D investment. There will be a need to establish (or switch to) a holding company structure. Holding companies can directly manage R&D in fields with high initial risks, and they can diversify these risks. The larger the number of foreign investors, the greater the R&D investment, indicating that foreigners directly or indirectly impose pressure on a manager to make R&D investments that bring long-term benefits. -
Citations
Citations to this article as recorded by
- EFFECT OF CORPORATE GOVERNANCE PRACTICES ON R&D AND INNOVATION COSTS: A CASE STUDY ON BORSA İSTANBUL
Hüseyin Ali KUTLU, Bekir GEREKAN
Muhasebe ve Vergi Uygulamaları Dergisi.2021; 14(3): 967. CrossRef - Corporate governance and the environment in the health sector: Systematic literature review
Isabel Cristina Panziera Marques, Zélia Maria da Silva Serrasqueiro Teixeira, Fernanda Maria Duarte Nogueira
Journal of Governance and Regulation.2020; 9(2): 8. CrossRef - Gouvernance et intensité d’innovation dans les ETI innovantes
Léopold Djoutsa Wamba, Éric Braune, Frédéric Teulon
Management & Avenir.2020; N° 118(4): 111. CrossRef - Differentiation of innovation strategies based on pharmaceutical licensing agreements: Insight from Korean pharmaceutical firms
Chie Hoon Song, Jens Leker
Technology Analysis & Strategic Management.2019; 31(2): 169. CrossRef
- EFFECT OF CORPORATE GOVERNANCE PRACTICES ON R&D AND INNOVATION COSTS: A CASE STUDY ON BORSA İSTANBUL
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