The Impact Of Government Subsidies On Investment Behavior And Financial Performance Of Huacan Company

In the 21st century,the global energy crisis is getting worse and worse,all countries in the world are inevitably involved in energy competition.Since the reform and opening up,China's economy has been developing at a high speed,and extensive economic development mode has consumed a large number of natural resources.As a kind of new energy,LED has many advantages,such as long life,energy saving,environmental protection and so on.It conforms to the new concept of green environmental protection and reducing waste of resources.It is popular among the public and naturally becomes the focus of government subsidies.The government is actively giving LED industry companies massive subsidies to support their development.However,whether the government subsidy can achieve its purpose and intention,whether the production and sales of subsidized LED companies have improved,how the government subsidy affects the investment behavior of the companies,whether the investment behavior has an impact on the company's performance,whether the government subsidy has more advantages than disadvantages or disadvantages than advantages,and whether the company's market value and long-term development are reflected or not is worth studying deeply.This paper focuses on how to maximize the effectiveness of government subsidies to further enhance the competitiveness of enterprises in the market.This paper focuses on the analysis of case enterprises,and selects Huacan company,which has received large government subsidies for many years,as the research object.The amount of government subsidy granted by Huacan company over the years is much higher than that of the industry average.The article first introduces the environment and development of LED industry in Huacan company.Then it collated and analyzed the scale,reason and way of the government subsidy that Huacan company obtained over the years.Then it analyzes the influence of government subsidy on the investment scale,investment direction and investment opportunity of Huacan company.The data analysis shows that the government subsidy alleviates the financial pressure of Huacan company to a certain extent,so that Huacan company has the capital to carry out large-scale expansion and technological research and development,after receiving large government subsidies,Huacan company is more likely to invest in factories and purchase equipment,in order to long-term development of enterprises.Finally,the paper analyzes the impact of government subsidy on the short-term financial performance and long-term financial continuity of Huacan company.The effect of government subsidy on the total profit and cash flow is immediate.At the same time,it also has an impact on Huacan company's profitability,operating ability,growth ability and debt paying ability.The injection of government subsidy funds reduces the risk of capital shortage,but Huacan company investment in more critical technology research and development is insufficient,which shows that government subsidy itself can not significantly improve the core competitiveness of enterprises.This paper mainly studies how to obtain and use government subsidy rationally under the background of the current policy of reinforcing the LED industry,so as to make the enterprise grow substantially.Theoretically speaking,this paper mainly studies the influence of government subsidy on the investment behavior and financial performance of the leading enterprises in LED industry.LED is a new industry.This paper supplements the relevant literature in this new research field.From a practical point of view,this paper mainly puts forward some suggestions on how to improve the business ability of enterprises and give full play to the maximum effectiveness of government subsidy.It also provides a certain reference for the government to encourage enterprises to research and develop,rationally allocate resources,and supervise the use of government subsidy funds.