Government Subsidies,Agent Cost And Company Performance

Government subsidies,as an important tool of fiscal policies,are of great significance to social and economic development.The decentralization reform of local governments has brought impetus to the government's participation in business activities.Local governments at various levels have been actively providing various supportive policies for local enterprises,including tax relief,financial appropriation,direct subsidies,free land and technology reward.But in fact,a large number of government subsidies did not perform its effect.On the one hand,the performance indicator of governments under the distortion of the increase in excess investment in enterprises,on the other hand,long-term government subsidies caused the dependence of enterprises,lowered the efficiency of enterprises,maintain or even increase the executive pay.Therefore,studying the effect of government subsidies and the factor which influence the effects have a certain practical significance.This paper studies the mediating effect of agency costs on the impact of government subsidies on firm performance and the adjusting effect of the equity nature and growth in the impact of government subsidies on corporate performance,using the mediation effect model and the mediating regulation effect model.Through the mediating effect model,it is found that the government subsidy intensity will reduce the improvement effect of the corporate performance,and the agency cost plays an incomplete mediating role in this process.Government subsidies on the one hand reduce the performance of the company by increasing the agency costs,on the other hand directly have a negative impact on the improvement of corporate performance.Through the mediation of the adjusting effect model,this paper found that the equity nature can't adjust the impact of government subsidies on corporate performance;growth can reduce the negative effects of the government subsidies on corporate performance,and this adjusting effect is achieved through negative adjusting impact of government subsidies on agency costs and directly reduce the government subsidies' negative impact on the company performance.Different from the existing relative researches,this paper analyzes the effect of government subsidies on corporate performance from the perspective of agency cost,analyzing the relationship between government subsidies,agency costs and corporate performance and the regulation effect of equity nature and growth ability by empirical researches.This paper theoretically enriched researches on government subsidies,agency costs and corporate performance,and provided a new research perspective and new research methods for related researches.In the practical sense,this paper provides an important basis for enterprises to improve the level of corporate performance,improve the corporate governance environment and policy-making related to government subsidies.