Studying On The Impact And Performance Of Government Subsidy To Get Rid Of Financial Distress

Scholars at home and abroad are mainly concentrated on the study of governmentsubsidies in the motivation of government subsidies and the effect of government subsidies.However, the scholars disputed on the effects of government subsidies. Some scholars believethat the government subsidies to enterprises have a positive effect, another part of the scholarsthink that the government subsidies did not play a positive role. At the same time, mostscholars choose general enterprises as the research object and study of financial distresscompany especially the ST companies is less. This article from tax rebates, funding and fiscalinterest discount, the company getting rid of distress and not were analyzed of governmentsubsidies for the influence of getting rid of the financial distress, the empirical analysisinspection government subsidies for the role of financial distress enterprises to get rid offinancial distress, then further study the company of financial distress for getting rid offinancial distress about business performance improved or not.In this paper, the research work is as follows:First of all, the use of government subsidies to build the Logistic regression model tocarry on the empirical analysis and the study found that in the process of the ST listedcompany getting rid of distress, government subsidies play an extremely important role. Thisarticle from tax rebates, funding and fiscal interest discount, the company getting rid ofdistress and not were analyzed of government subsidies for the influence of getting rid ofthe financial distress. The empirical analysis results are positive correlation, Logisticregression analysis showed that funding will help financial distress company to getting rid ofthe financial distress, and tax rebates and fiscal interest discount did not increase the risk ofgetting rid of financial distress. In addition the company scale, asset-liability ratio is relativelylow ST company is easier to getting rid of the financial distress, but the nature of thecontrolling shareholder of state-owned property is not greatly related to getting rid of thefinancial distress successfully. Industry properties for industrial companies in getting rid offinancial distress didn’t play a positive role.Second, using factor analysis to evaluate the company of financial difficulties for the year of getting rid of financial distress year, the year before getting rid of financial distressand the year after getting rid of financial distress two year of solvency, profitability,management and development capacity in four areas of business performance, analyze afterthe company of financial difficulties getting rid of financial distress really improve businessperformance. The results show that the year of getting rid of financial distress solvency andprofitability have increased significantly, while the operational and development capacityslightly increased, but the increase is particularly small margin; and after a year of operatingperformance and after two years of operation performance were also lower operatingperformance, operating performance after getting rid of financial distress did not reallyimprove.This article through the analysis of government subsidy to the effect of the financialdistress company getting rid of distress and after getting rid of distress of the company’soperating performance, then puts forward personal advice: reform funding form ofgovernment subsidies, improve the financial situation of the company’s actual operatingperformance; Government subsidies should adhere to the market-oriented, to achieve theimprovement of the company’s core competitiveness; standard the report of governmentsubsidies and increase the degree of reliable information.