Government Subsidies,Corporate Governance And Corporate R&D Activities

Over the past 30 years,China has maintained a state of rapid development.The accumulated risks of rapid growth for many years have gradually emerged,and the Chinese economy has entered a new normal period of slow shift.From a dynamic perspective,under the new normal of China's economy,China's economy will shift from factor-driven and investment-driven to innovation-driven.In the context of innovation-driven development strategies,corporate R&D activities have important strategic significance for promoting technological progress,upgrading innovation levels,and promoting sustainable social progress.In recent years,the Chinese government has invested a lot of resources in R&D activities of enterprises and has formulated a series of policies to encourage R&D activities of enterprises.However,China's technological level has not been significantly improved.How does government subsidy affect the company's R&D activities?From the three aspects of investment behavior,output results and effic iency,the R&D investment of R&D activities reflects the R&D investment behavior of enterprises.The R&D output reflects the substantive output of the company.The research and development efficiency reflects the gap between the actual output and the optimal output under a certain investment scale.It measures the allocation efficiency and the efficiency of the transformation of the R&D resources of the R&D activities of the enterprise.Then,does the company's R&D investment behavior,R&D output,and R&D efficiency increase with government subsidies?Can the company itself make good use of government subsidies by optimizing internal governance?Based on such background and problems,the core issues of this paper are the impact of government subsidies on corporate R&D activities and the regulatory role of corporate governance.This paper combines the research methods of normative research and empirical research,studies the mechanism of the impact of government subsidies on R&D activities of enterprises,and uses the sample data of high-tech enterprises in 2009-2017 to conduct empirical tests and expand the relevant conclusions.The conclusions of this paper are as follows:(1)Government subsidies have a stimulating effect on corporate R&D investment.Government subsidies promote investment in R&D activities of enterprises through financial support,reduction of R&D risks and costs,and transmission of positive signals.(2)Government subsidies have a stimulating effect on corporate R&D output,and government subsidies increase the company's substantial R&D innovation.(3)Though government subsidies encourage the development of R&D activities of enterprises,from the perspective of efficiency,with the increase of government subsidies,the gap between the actual output and the optimal output under a certain investment scale increases,which shows that the R&D efficiency of the enterprise,that is,the allocation of R&D resources and the reduction of conversion efficiency.Further research was conducted through extended testing.The reason is that the government subsidies alleviated the financing constraints of the company,which made the company relax the cautiousness of funds and the decision-making and management of R&D projects,thereby reducing the efficiency of R&D resource allocation and utilization.(4)For companies with higher corporate governance levels,the negative impact of government subsidies on R&D efficiency is weakened.A good corporate governance mechanism enables companies to have more long-term benefits when making investment decisions,maintain management and supervision of R&D projects,and make better use of government subsidies.The main contributions of this paper are as follows:(1)In terms of theoretical research,this paper studies the impact of government subsidies on R&D investment,R&D output,R&D efficiency from the perspective of individual enterprises,enriches the impact of government subsidies on R&D of enterprises,and fills the gap in the influence of corporate governance on R&D efficiency when measuring R&D efficiency at the individual level of an enterprise.(2)In terms of practical significance,this paper empirically tests the role of government subsidies for R&D activities of enterprises,provides empirical evidence and reference for the implementation and utilization of government subsidies,and provides useful countermeasures for the government to formulate scientific and effective funding policies.For enterprises,this paper reveals the importance of corporate governance within the relationship between government subsidies and R&D efficiency.It urges enterprises to promote the management and supervision of their own R&D,improve the efficiency of R&D processes,and promote the value of listed companies.This paper urges enterprises to improve the rational use of government subsidies,so as to create a good relationship between the healthy and sustainable development of government enterprises.