Impact of China's Vaccine Incidents on the Operational Efficiency of Biopharmaceutical Companies

Abstract

Objectives: This study aims at (1) analyzing the 15 representative biopharmaceutical companies in China before and after the vaccine incidents during the transition period of China's economy, using financial indicators as a proxy for corporate operational efficiency and corporate social responsibility (CSR); (2) analyzing the factors influencing business operational efficiency, and providing a future development strategy for the pharmaceutical industry to better fulfill its social responsibility by studying the relationship between business operational efficiency and social responsibility performance; and (3) conducting a comprehensive analysis of the results of this study, and providing relevant recommendations for biopharmaceutical companies to fulfill their social responsibilities and ensure a high quality of products. Methods and Data: The panel data regression evaluates whether a biopharmaceutical company's social responsibility has an impact on its operational efficiency. A part of the data used in this study is obtained from the quarterly and annual financial statements of biopharmaceutical companies, while other relevant data are obtained from the China Stock Market & Accounting Research (CSMAR) database. Results: A comprehensive regression analysis of the rate of return on total assets shows that the vaccine incidents have made biopharmaceutical companies pay more attention to CSR, as actively taking social responsibility will help establish a better corporate image and form, and increase the operating efficiency. Conclusion: According to the current state of development in China, the size of a company has a positive impact on the improvement of its social responsibility and operational efficiency. The larger the company, the more attention it pays to shareholders and consumers, and the stronger its sense of responsibility to employees and society. By actively undertaking CSR activities, a company will get more support from shareholders, employees, and consumers, and will also enhance the corporate reputation. Biopharmaceutical companies actively undertake social responsibilities toward the government, employees, and shareholders, which will, to some extent, increase the public's trust in drug safety and have different degrees of impact on the overall efficiency of the company.

Impact of government subsidies on innovation of Chinese biopharmaceutical firms: Based on kink threshold model

“…There is currently a proliferation of scholarly research on the biopharmaceutical field, with studies on the strategic performance of biopharmaceutical companies (30,31), the development of technological innovation in the biopharmaceutical industry (32)(33)(34), and the impact of epidemics on biopharmaceutical companies (5). Fewer studies combine government subsidies on biopharmaceutical firm innovation (35,36), fewer use the threshold models (37) to investigate the field, and even fewer focus on the sustainability of firm innovation using dynamic models (38).…”

Characterizing News Report of the Substandard Vaccine Case of Changchun Changsheng in China: A Text Mining Approach

“…Vaccine incidents or related events are an important aspect of vaccine research, particularly when covered by the media and reflecting extensive concern from the society [ 12 , 13 , 14 ], as they can have a potential impact on vaccination confidence [ 15 , 16 ]. These events can cause average citizens with little professional knowledge on vaccinations to worry, particularly for their children [ 17 , 18 , 19 ].…”