Research on the Growth Influencing Factors and its Mechanism of Action of Chinese Pharmaceutical Enterprises based on FA&SEM

Abstract

In recent years, China's pharmaceutical industry has maintained rapid development. Since the outbreak of COVID-19, the pharmaceutical industry has faced new opportunities and challenges. Exploring the factors that affect the growth of pharmaceutical companies and clarifying their mechanism is of great significance to the reform and development of the pharmaceutical industry. Taking 278 listed companies in the pharmaceutical industry as samples, we select 13 indicators that affect the growth of pharmaceutical companies from six dimensions. Then use factor analysis to extract four common factors: solvency factor, profitability factor, operating capability factor, and technological innovation factor. After that, we formulate research hypotheses and use the structural equation model to verify the path relationship between each factor and the growth of pharmaceutical companies. The results show that: profitability and technological innovation capabilities are key factors that affect the growth of pharmaceutical companies, and the mechanism of interaction among influencing factors was also found.