The Influence Of Government Subsidy On Enterprise Performance Of Listed Companies

Although China's market economy is constantly developing,the govenlment's guidance and influence oin enterprises is still ubiquitous,and the most direct manifestation is government subsidies.In recent years,the number of listed companies that have received government subsidies has gradually increased,and the amount has also increased year by year.Take the clothing and textile industry as an example.In 2010,35 companies received government subsidies,and the amount was only 270 million yuan.But in 2017,this number has jumped to 2.374 billion yuan,and the number of companies receiving subsidies has grown to 56.Then,when the government conducts such large-scale assistance and subsidies for listed companies,what influence will the company bring,whether it can play the role of govermment subsidies to regulate the economy and support development,is thought-provoking.This paper is mainly introduced by the relevant domestic and foreign literature and the interpretation of the old and new government subsidy accounting standards.After an in-depth analysis of the scale,type and amount of government subsidies obtained by the Jihua Group Corporation Limited Group from 2010 to 2017,Then,we will explore the impact of government subsidies on the financial performance of Jihua Group Corporation Limited from the aspects of current profit,profitability and cash flow of the enterprise,and judge whether the government subsidy plays a positive role in non-financial performance according to the performance of Jihua Group Corporation Limited.After conducting the above-mentioned case analysis of Jihua Group Corporation Limited,it was found that the large amount of government subsidies obtained by Jihua Group Corporation Limited not only filled the current cash flow,but also greatly improved the current profit,and even turned losses into profits.However,the profitability of Jihua Group Corporation Limited itself does not appear to be matched with the amount of government subsidies.On the contrary,there is a faint deterioration,and even the profit is more dependent on government subsidies,although the subsidies are still to a certain extent to the Jihua Group Corporation Limited.Financial performance has played a positive role in promoting its active fulfillment of social responsibility.In the end,the paper draws conclusions and proposes corresponding proposals from both the enterprise and the government to ensure that government subsidies can play their due role better.