Economics, Econometrics and Finance
8 years ago

Pharmaceutical Companies in China Prioritize Equity Financing, Boosting Access to Medicines

Zhongguo yaofang
Research of Financing Preference and Influential Factors of Pharmaceutical Listed Companies in China Based on Analytic Hierarchy Process
Wu Fan

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The study looked at how pharmaceutical companies in China prefer to get money and what factors influence their choices. They analyzed data from 52 companies between 2008 and 2013. The companies mostly used equity financing, followed by commercial credit and retained earnings. The main factors affecting their financing choices were the company's characteristics, the external environment, and the type of financing. It was found that improving credit ratings, keeping debt levels reasonable, and reducing financing costs could help these companies be more efficient in getting money.