Government Intervention, Financial Development And The Performance Of Cultural Enterprises

Culture is an integral part of social life, nowadays with the development of social and economy, the consumption of cultural is becoming an important part of our lives, and the entertainment industry is increasingly becoming one of China’s strategic emerging industries, which is an important aspect of China’s economic structure upgrading and transformation. At the same time, financial development can provide more ways of capital and improve capital utilization efficiency. However, due to cultural enterprises have ideological nature, and most companies need large amount of initial investment, and there are high risk in return, making cultural enterprises facing some obstacles in obtaining financial support. Meanwhile, in the background of China’s emerging and transition, government plays an important role in the development of cultural enterprises and the distribution of local financial resources. In order to improve the development of cultural industries, this paper attempts to expand the relationship among financial development, government intervention and entertainment company.Firstly, the author analyses the impact on the cultural enterprises of government intervention and financial development, combining the present situation, analyses of the root of the problem at present, the paper selected 96 companies using the data from 2004 to 2014 to do empirical research. The results show that:R&D funding is important in the development of cultural enterprises, and state owner is not conducive to cultural enterprises’performance improvement, the level of financial development promotion is in favor of promoting companies’ growth and profitability, and in the eastern region, companies are mainly affected by capital market development while in the Midwest bank credit is more important. There are regional differences in government intervention’s effect, in the eastern region, government intervention can improve corporate growth Midwest government intervention exists side effects. The fundamental reason is that China’s economic development stage and the financial system is incomplete.To solve the above problem, we propose policy recommendations to better promote the development of cultural enterprises from three aspects:entertainment enterprises, financial development and government.