A Study of Financial Risks of Pharmaceutical Industry Enterprises from the Perspective of Corporate Governance

DOI

10.2991/978-94-6463-562-1_18How to use a DOI?

Keywords

Financial Risks; Pharmaceutical Industry Enterprises; Corporate Governance

Abstract

A good corporate governance structure can effectively control and prevent the financial risk of pharmaceutical industry companies. This study calls on the CSMAR database and selects the comprehensive data on corporate governance and financial risk of Chinese A-share listed companies in the pharmaceutical industry from 2019-2022 to explore the relationship between corporate governance and financial risk in the pharmaceutical industry. The results of the study show that there is a significant negative correlation between the equity structure of pharmaceutical companies and financial risk, indicating that the higher the equity concentration, the lower the financial risk. The study found a negative relationship between executive characteristics and financial risk. In addition, the study analysed the moderating effect of the nature of ownership on the relationship between corporate governance and financial risk. Therefore, this study suggests that pharmaceutical companies should clarify shareholders’ responsibilities and rights, improve the dual-track system of management and supervision, and strictly comply with industry norms and laws and regulations. This study provides a reference for reducing the financial risk of enterprises in the pharmaceutical industry.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Weihuan Liu
AU  - Runyu Li
PY  - 2024
DA  - 2024/11/13
TI  - A Study of Financial Risks of Pharmaceutical Industry Enterprises from the Perspective of Corporate Governance
BT  - Proceedings of the 2024 5th International Conference on Big Data and Social Sciences (ICBDSS 2024)
PB  - Atlantis Press
SP  - 184
EP  - 193
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-562-1_18
DO  - 10.2991/978-94-6463-562-1_18
ID  - Liu2024
ER  -