Research On The Impact Of Government Subsidy On FOTON’s Operating Performance

In China,local governments often adjust government structure and enterprise production decisions through government subsidies to promote the healthy development of enterprises.However,whether government subsidies can positively promote the business performance of enterprises has always been a concern of scholars.Some studies have concluded that government subsidies can and mainly contribute to the growth of business performance in terms of both the company’s profitability and development capability,while some research conclusions elaborate on another point of view.In recent years,as environmental problems have become more serious,people are becoming more aware of energy conservation and green environmental protection,and they are paying more and more attention to the development of new energy automobile industry.At present,China’s government subsidies for new energy enterprises are still strong.The new energy automobile industry has developed rapidly in recent years.At the same time,as a strategic emerging industry,the government has given strong support in the process of achieving staged results in the industry.Government subsidies are factors that have an important impact on business performance.This paper selects FOTON,a company with large production and sales volume of new energy vehicles in China,as a case study object,and attempts to study the government’s support and influence degree on government subsidies for new energy auto companies such as Foton Motor from a financial perspective.On the basis of reviewing the literature on the impact of government subsidies on business performance at home and abroad,The financial indicators and the non-financial indicators such as investment behavior,R&D investment,and operational risk are used to examine the impact of government subsidies on business performance.The government subsidy only enhances the profitability of the company’s profitability,and does not actually improve the business performance of the company.To promote,it conceals the risks and crises that may exist in the enterprise,so that internal managers ignore their own business conditions and influence the formulation of strategic decisions.It also affects the investment decisions of external information users,and there is no long-term development for enterprises.Play a positive role.Therefore,this paper puts forward relevant suggestions.Enterprises should reasonably allocate and use the government subsidies obtained,actively improve the profitability of the main business,and increase investment in research and development.The government should strengthen the supervision and review procedures of the government in the application of government subsidies and increase the subsidies.effectiveness.