The Relationship Between Capital Structure and Profitability in Pharmaceutical Manufacturing Industry

Mingqian Feng ()
Additional contact information
Mingqian Feng: Washington University in St. Louis

A chapter in Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022), 2023, pp 274-282 from Springer

Abstract: Abstract Since the 19th CPC National Congress, the Chinese government has deepened the reform of pharmaceutical enterprises and established a high-quality and efficient medical service system. Meanwhile, pharmaceutical and medical companies have also made important contributions during the pandemic. According to the date from XIANGXIN securities, vaccines, in vitro diagnostics, and biologics were the three fastest growing areas of net profit for pharmaceutical companies compared to the same period. The pharmaceutical manufacturing industry not only provides a large number of basic health services across the country, but also continues to make breakthroughs in drug research and development and technological innovation. Therefore, it is very necessary to analyze the profitability of listed pharmaceutical enterprises. The specialties of pharmaceutical industry includes high investment, high yield, high risk and long cycle, which determines that the pharmaceutical industry faces the problem of financing difficulties for a long time. Domestic literatures on the pharmaceutical industry mostly focus on improving the external environment of enterprises and increasing financial support, ignoring the influence of the internal capital structure of enterprises on financing. Whether a reasonable capital structure inside an enterprise can effectively improve its financing difficulties and what factors are more effective are worth our in-depth study.

Keywords: capital structure; pharmaceutical industry; manufacturing industry; profitability (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-054-1_31

Ordering information: This item can be ordered from
http://www.springer.com/9789464630541

DOI: 10.2991/978-94-6463-054-1_31

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().