The Influence Of Industrial Policy And The Listing Corporation Government Subsidies And Their Economic Consequences

The relationship between the government and enterprises is very close in theemerging markets of China. On the one hand, the government is important managersof the social and economic life, which would take a variety of forms to participate inthe production and business activities to achieve the purpose of the enterprisemanagement intervention; it is a very common way to give financial support to theenterprise. Government financial support of enterprise mainly the following threeforms: The first form is the government will give enterprises direct tax incentives, thesecond way is tax return, and the last form is the enterprises financial assistance. Thispaper will research the last form which is government subsidies. On the other hand,China is also an country which use more national industrial policy, to achieve thegoals of the government established industrial policy, in addition to take the industrialpolicy as a control capital market access threshold, whether there are another ways?Give the listed companies which in line with national industrial policy financialsubsidies. This paper studies the problem: Is this phenomenon exists? If there is,which influencing factors will lead to the existence of this phenomenon, and theeconomic consequences of the government subsidies?This paper is divided into six parts, specific chapter is organized as follows:Chapter One "Introduction" after adequately address the research background,research objectives and research significance of this paper, then goes on to presentresearch ideas and research methods, and finally clarify this features innovative andinadequacies. Then introduce the study of the government grants.Chapter Two "Theoretical analysis and Research" This part mainly introducethe industrial policy and the government grants, separately introduce theirtheoretical foundation.Chapter Three "theoretical basis and assumptions "the part first analyze thetheoretical basis of this article assumes which is stakeholder theory, asymmetricinformation theory and principal-agent theory; After this three theories, this articlefive research hypotheses are gived.Chapter Four "study design" this part presents the selection of the sample data,variable definition and establishment of the model. Chapter Five "empirical results and analysis "using descriptive statistics andcorrelation analysis to clarify the relationship between the main features of theindividual data by the SAS software; then given the empirical test results of the paper,then detailed analyzed the results; Finally, in order to further ensure the accuracy ofthe empirical results, we also do the sound test.Chapter Six "conclusions and recommendations "according to the aboveempirical results, summarizes the conclusions of this study, and based on the resultsof this study, proposed further correlation.Through this study found that: government more inclined to give the listedcompanies which is in line with national industrial policy government grants, and ifthe listed companies which is in line with national industrial policies, or its controllingshareholder is the local economic development of the state shares, The opportunity toreceive government subsidies greater then other listed companies. Finally, make thefurther research with listed companies which are in line with national industrial policyand government grants, found that government subsidies help to improve operatingresults of listed companies, but the improvement action will be different with thedifference of the controlling shareholder nature and the economic prosperity. Thegovernment subsidies help to improve operating results of the non-state-owned listedcompanies and the low economic prosperity of listed companies, but the impaction ofthe state-owned listed companies and the high economic prosperity of listedcompanies are not big.