Government Subsidies,Financing Constraints And Investment Efficiency Of Strategic Emerging Industries Listed Companies

During the “12th Five-Year Plan” period,under the complex and volatile international environment and the "new normal" of Chinese economy,China has successfully grasped a new wave of emerging industries and achieved a sustained and rapid growth of strategic emerging industries.The industry has gradually become a new engine for the Chinese economy and has played an important role in stabilizing economic growth,promoting economic transformation and upgrading,and leading innovation and development.The "13th Five-Year" national strategic emerging industries development plan also clarified that we must continue to enhance the supporting role of emerging industries and continuously increase support for strategic emerging industries.The most direct way to support is government subsidies.As a basic component of an industry,an enterprise's investment activities are closely related to the development of the industry.The investment behavior of an enterprise is affected by a variety of internal and external factors.In particular,strategic emerging industries have the characteristics of difficult technical development and large capital requirements and so on.Investment behavior is often subject to financing constraints,and government subsidies play an important role in stimulating and guiding corporate investment activities.At present,there have been many researches on the effect of government subsidies on the effectiveness of government subsidies at home and abroad,such as productivity,profitability,and so on.Comprehensively measuring the impact of government subsidies and financing constraints on investment efficiency,we can explore the effects of government subsidies from the perspective of investment efficiency.So it is important and practical to test the effectiveness of government subsidy and improve the subsidy policies.This paper takes a strategic emerging industry listed company as a sample,uses descriptive statistical methods to analyze the changes and distribution of government subsidies obtained by China's strategic emerging industries,and measures and analyzes the degree of financing constraints and investment efficiency.Based on this,using the Baron mediating effect test model to examine the mediating effects of financing constraints in the relationship between government subsidies and investment efficiency.Finally calculating the bilateral and net effects of financing constraints and government subsidies on investment efficiency with a two-tier stochastic frontier model.The net effect will be tested according to the ownership of the company,the region,the listed sector,and the industry group.Based on theoretical analysis and empirical results,the following conclusions are drawn:(1)From the perspective of statistical analysis,the amount of government subsidies has been increasing year by year,and the coverage has been continuously expanding.While the degree of financing constraints and investment efficiency of enterprises have fluctuated.There are differences among different companies.(2)Through the mediating effect test,it is found that government subsidies can improve the investment efficiency of enterprises,and financing constraints play an intermediary role in government subsidies affecting the investment efficiency of enterprises.From the results of the regression model,government subsidies are positively related to investment efficiency,while financing constraints have a negative impact on investment efficiency.(3)Through the two-tier stochastic frontier model results,it is found that the government subsidies can smooth the negative effect of the financing constraints on the investment efficiency to a certain extent,but cannot fully offset the negative effects.As a result,the actual investment level is 2.15% lower than the optimal level of strategic emerging industry listed companies,and the general situation is underinvestment.And about a quarter of strategic emerging industry listed companies is 16.97% higher than the optimal level,which indicates overinvestment.The annual characteristics of investment efficiency of listed companies in strategic emerging industries during 2010-2016 have shown a downward trend and then a rising trend.(4)The net effect of government subsidies and financing constraints on investment efficiency is different among the enterprises in different ownership systems,regions,listed board and industries.Among different ownership enterprises,the net effect of non-state-owned enterprises is higher than that of state-owned enterprises.Subsidies provide better compensation for the negative effects of non-state-owned enterprises' financing constraints.From a regional perspective,the net effect in the central region is the lowest among the three regions.From the perspective of the listed board differences,the net effect of the GEM is higher than that of the main board and small and medium-sized companies.From the perspective of industry differences,the net effect of the new energy auto industry is positive,there is an overinvestment phenomenon,and the net effect of emerging information industry and energy-saving environmental protection industry is negative,but only-0.1% and-0.71%,indicating the government subsidies obtained by these two industries can largely smooth the negative effect of financing constraints.Based on the studies,this paper concludes that we should broaden the financing channels to ease the phenomenon of financing constraints for strategic emerging industries,and establish and improve the government subsidy mechanism,make rational use of government subsidy funds,effectively play the role of government subsidies in improving corporate investment efficiency,and effectively improve the effect of government subsidy policies,nurturing and developing strategic industries,building a new pattern for the development of emerging industries,and improving the development environment for emerging industries.