This study utilizes neural network to explore the nonlinear relationships between corporate performance and the patent traits
measured from Herfindahl-Hirschman Index of patents (HHI of patents), patent citations, and relative patent position in the
most important technological field (RPPMIT) in the US pharmaceutical industry. The results show that HHI of patents and RPPMIT have nonlinearly and monotonically positive influences upon corporate performance, while the influence of patent citations
is nonlinearly U-shaped. Therefore, pharmaceutical companies should raise the degrees of the leading position in their most
important technological fields and the centralization of their technological capabilities to enhance corporate performance.
The occurrence of Asian Financial Crisis and successive scandals highlight the importance of corporate governance on which the public start to stress. “Pursuing internationalization for sustainable development” has become a trend for corporate development in the future. Nonetheless, the promotion of internationalization enhances multiple operating environments and information complexity. An enterprise therefore has to adjust the existing organizational structure and construct favorable corporate governance mechanisms to timely reflect market demands and have the enterprise acquire the advantage of the economy of scale through overseas extension points. With the approach of globalization era, the extreme dependence of economic activities on import/export hastens Taiwan actively joining in World Trade Organization (WTO) to enhance the circulation of goods and resources among member states. Under such a trend, the industrial structure in Taiwan needs to be adjusted, and industries with competitiveness would present larger development space. Aiming at listed companies in Taiwan Stock Exchange, the research period is set 16 years, from 1999 to 2014. The research results conclude that 1. competition would affect corporate governance, 2. competition would influence corporate performance, and 3. corporate governance would affect corporate performance. The research results are expected to inspire international enterprises with the competition evaluation and corporate governance adjustment to promote the corporate performance.
Claessens, S. and Djankov, S. (1999): Ownership Concentration and CorporatePerformance in the Czech Republic . CEPR Discussion Paper, No. 2145.
Claessens, S., Djankov, S. and Pohl, G. (1996): Ownership and Corporate Governance