Open AccessA Discriminant Analysis of the Financial Indicators of the Innovative Pharmaceutical Enterprises
Author(s) -
Yuanyuan Zhang,
Yu Jia
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/440/2/022039
Subject(s) - business , relevance (law) , linear discriminant analysis , sample (material) , pharmaceutical industry , pharmaceutical manufacturing , value (mathematics) , finance , computer science , medicine , chemistry , chromatography , artificial intelligence , machine learning , political science , law , pharmacology
This study examines the value relevance of financial indicators and pharmaceutical innovation. Discriminant analysis is used to study the difference of the financial indicators of innovative pharmaceutical enterprises and the generic pharmaceutical enterprises during the sample period between 2013 and 2017. The results show that operational capacity, debt-paying ability, growth capacity and research and development capabilities are important indicators for identifying innovative pharmaceutical companies. Investors can take these financial indicators into consideration when measuring the innovation ability of pharmaceutical enterprises.