Skip Navigation
Skip to contents

PHRP : Osong Public Health and Research Perspectives

OPEN ACCESS
SEARCH
Search

Search

Page Path
HOME > Search
2 "pharmaceutical industry"
Filter
Filter
Article category
Keywords
Publication year
Authors
Original Articles
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
  • 1,955 View
  • 18 Download
  • 3 Citations
AbstractAbstract 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
    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
  • 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
Analysis on Time-Lag Effect of Research and Development Investment in the Pharmaceutical Industry in Korea
Munjae Lee, Mankyu Choi
Osong Public Health Res Perspect. 2015;6(4):241-248.   Published online August 31, 2015
DOI: https://doi.org/10.1016/j.phrp.2015.07.001
  • 1,971 View
  • 13 Download
  • 13 Citations
AbstractAbstract PDF
Objectives
The aim of this study is to analyze the influence of the research and development (R&D) investment of pharmaceutical companies on enterprise value.
Methods
The period of the empirical analysis is from 2000 to 2012, considering the period after the influence of the financial crisis. Financial statements and comments in general and internal transactions were extracted from TS-2000 of the Korea Listed Company Association, and data related to stock price were extracted from KISVALUE-III of National Information and Credit Evaluation Information Service Co., Ltd. STATA 12.0 was used as the statistical package for panel analysis.
Results
In the pharmaceutical firms, the influence of the R&D intensity with regard to Tobin's q was found to be positive. However, only the R&D expenditure intensities of previous years 2 and 5 (t–2 and t–5, respectively) were statistically significant (p < 0.1), whereas those of previous years 1, 3, and 4 years (t–1, t–3, and t–4, respectively) were not statistically significant.
Conclusion
R&D investment not only affects the enterprise value but is also evaluated as an investment activity that raises the long-term enterprise value. The research findings will serve as valuable data to understand the enterprise value of the Korea pharmaceutical industry and to strengthen reform measures. Not only should new drug development be made, but also investment and support should be provided according to the specific factors suitable to improve the competitiveness of each company, such as generic, incrementally modified drugs, and biosimilar products.

Citations

Citations to this article as recorded by  
  • R&D activity and firm performance: mapping the field
    Kseniia Boiko
    Management Review Quarterly.2022; 72(4): 1051.     CrossRef
  • Pharmaceutical industry in export marketing: a closer look at competitiveness
    Mehdi Mohammadzadeh, Nima Bakhtiari, Reza Safarey, Tayebeh Ghari
    International Journal of Pharmaceutical and Health.2021; 13(3): 331.     CrossRef
  • The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange
    Catalin Ionita, Elena Dinu
    Kybernetes.2021; 50(10): 2823.     CrossRef
  • AR-GE GİDERLERİ İLE KÂRLILIK VE BÜYÜME ARASINDA NEDENSELLİK İLİŞKİSİ: BIST ÜZERİNE BİR İNCELEME
    Mehmet DİKİCİ, Kadir GÜRDAL
    Muhasebe ve Vergi Uygulamaları Dergisi.2021; 14(3): 1193.     CrossRef
  • R&D Investments, Debt Capital, and Ownership Concentration: A Three-Way Interaction and Lag Effects on Firm Performance in China's Pharmaceutical Industry
    Chih-Yi Su, Yao-Ning Guo, Kuang-Cheng Chai, Wei-Wei Kong
    Frontiers in Public Health.2021;[Epub]     CrossRef
  • R&D SPENDING AND FINANCIAL PERFORMANCE: AN INVESTIGATION IN AN EMERGING MARKET
    Nasıf ÖZKAN
    International Journal of Management Economics and .2021;[Epub]     CrossRef
  • The persistence of current market valuation of future capital investment
    Nancy Beneda
    Journal of Corporate Accounting & Finance.2020; 31(3): 163.     CrossRef
  • Sustainability assessment of universities as small-scale urban systems: A comparative analysis using Fisher Information and Data Envelopment Analysis
    Ning Ai, Marc Kjerland, Cynthia Klein-Banai, Thomas L. Theis
    Journal of Cleaner Production.2019; 212: 1357.     CrossRef
  • Analysing future change in the EU's energy innovation system
    Yeong Jae Kim, Charlie Wilson
    Energy Strategy Reviews.2019; 24: 279.     CrossRef
  • A review of three years' experience of the first pharmacometrics company in Korea
    So Jin Lee, Sangil Jeon
    Translational and Clinical Pharmacology.2019; 27(4): 149.     CrossRef
  • The impact of inter-industry R&D technology spillover on carbon emission in China
    Jianling Jiao, Yufei Yang, Yu Bai
    Natural Hazards.2018; 91(3): 913.     CrossRef
  • Characteristics of Corporate R&D Investment in Emerging Markets: Evidence from Manufacturing Industry in China and South Korea
    Jian Xu, Jae-Woo Sim
    Sustainability.2018; 10(9): 3002.     CrossRef
  • R&D Investments, EPO Patent Applications and the Economic Heterogeneity within the EU
    Zuzana Potužáková, Jan Öhm
    Review of Economic Perspectives.2018; 18(2): 177.     CrossRef

PHRP : Osong Public Health and Research Perspectives