Impact Of Government Subsidies On Corporate Performance

China has entered the "13th Five-Year Plan" period.In order to guide and support the development of listed companies and maximize social benefits,the government has issued a series of support policies.Government subsidies have become an important driving force and support for the development of listed companies in China..There are widespread government subsidies in listed companies in China,and the government's subsidies for listed companies are increasing,occupying a large amount of national resources.However,the existing literature on the impact of government subsidies on the performance of listed companies is still controversial.Therefore,studying the impact of government subsidies on corporate performance has important practical significance for improving government subsidy efficiency and improving relevant systems,and is also of great significance for improving the efficiency of resource allocation in scarce countries.This paper firstly analyzes the impact of government subsidies on corporate financial performance by using government intervention theory and signal transmission theory.It analyzes the impact of government subsidies on corporate innovation performance by applying externality theory,government intervention theory,incentive effect and extrusion effect theory.On this basis,this paper adopts the dynamic screening method to select financial performance indicators,uses the coefficient of variation method to determine the weight of financial performance indicators,and builds a panel industry financial performance evaluation system,which is used to comprehensively evaluate BOE's financial performance from 2008 to 2017.The impact of government subsidies on corporate financial performance is analyzed.The number of patent applications and DEA model are used to evaluate BOE's innovation output and innovation efficiency,so as to analyze the impact of government subsidies on corporate innovation performance.The results show that the scale of government subsidies received by BOE is generally on the rise,and government subsidies have a positive effect on the financial performance of t,t+1,t+2 and t+3.Government subsidies have long-term incentives for R&D investment of enterprises,while R&D investment is consistent with the trend of innovation output,which indicates that government subsidies have an incentive effect on innovation output,and government subsidies have an impact on innovation efficiency of t+3 years.Based on the above research,in order to further improve the utilization efficiencyof government subsidies in China and improve the allocation of national resources,this paper proposes that the evaluation of the effect of government subsidies should pay attention to the short-term and long-term performance of enterprises;the evaluation of financial performance of enterprises should adopt financial comprehensive performance;Enterprise subsidies should focus on the cultivation of innovative capabilities;enterprises should actively cooperate with government subsidies to improve their long-term development capabilities.