Government Subsidies,Management Ability And Enterprise Performance

As an important part of innovation-driven strategy,strategic emerging industries can not only optimize the structure of the national economy,but also promote the transformation and upgrading of the national economy,which is the only way to enhance the strength of the national economy.In recent years,the Chinese government has stepped up efforts to support strategic emerging industries.It has not only invested a large amount of funds to support R&D and innovation projects of emerging enterprises,but also formulated corresponding talent programs.It is undeniable that government subsidies promote the development of strategic emerging industries to some extent.However,there are still problems such as excess capacity and lack of core technolog:ies in the development of strategic emerging industries.Some strategic emerging enterprises even take advantage of the loopholes of national policies and cheat the government for subsidies.The amount of government subsidies to strategic emerging industries is huge,and there is no effective supervision on the investment and use of government subsidies.It is urgent to test whether government subsidies stimulate the performance of enterprises in strategic emerging industries.In addition,The 13th five-year plan for the development of strategic emerging industries emphasizes that talent is the primary resource for developing and expanding strategic emerging industries.And the management is the core human capital of an enterprise.Management is the decision maker and executor of the allocation and use of government subsidy.The level of the management ability is likely to have a differential effect on the performance of government-subsidized output.Therefore this article selects the government subsidies,management ability and enterprise performance as research objects and takes the data of listed companies of strategic emerging industries listed in Shanghai and Shenzhen A shares from 2011 to 2017 as research samples.Through normative analysis and empirical test,this paper analyzes the impact of government subsidies on corporate performance of listed companies in strategic emerging industries.In addition,it innovatively investigates the moderating effect of managemelt ability on the relationship between goverument subsidies and enterprise performance.Finally,it further analyzes the moderating effect of executive compensation on managerial ability and the mediating effect of R&D and innovation on government subsidies and enterprise performance.This paper aims to clarify the relationship between government subsidies,management ability and enterprise performance,so as to provide new ideas for relevant research and provide reference for the development of China's strategic emerging industries.This paper consists of six parts.Each of which is shown as follows:The first part is the introduction,which mainly expounds the research background,research significance,research methods and ideas as well as innovative points of this paper.The second part is literature review,which sorts out domestic and foreign relevant literatures from three aspects,namely,research on government subsidy,management capability and enterprise performance,and summarizes the existing research results.The third part is theoretical analysis and hypothesis.This part defines the main concepts involved in this paper,elaborates the relevant theoretical basis,and puts forward the research hypothesis of this paper based on theoretical analysis.The fourth part is the research design,which first introduces the sample selection and data sources,then expounds the research on variable selection and definition,and finally establishes the research model of this paper.The fifth part is empirical analysis,which mainly focuses on descriptive statistics,correlation analysis,empirical analysis and robustness test of sample data.The sixth part is the research conclusion and policy recommendations.This part elaborates the research conclusion and relevant policy recommendations,points out the contribution and limitation of the research,and points out the direction for further research.According to the empirical test of this paper,the following conclusions are drawn:among listed companies in China's strategic emerging industries,(l)Government subsidies play a significant role in promoting enterprise performance.(2)The ability of management can positively regulate the impact of government subsidies on enterprise performance.(3)The higher the executive compensation,the more significant the positive moderating effect of management ability on the relationship between government subsidy and enterprise performance.(4)Innovations plays an intermediary role between government subsidies and enterprise performance.According to the research conclusion of this paper,the following policy suggestions are put forward:(1)Improve the government subsidy mechanism.(2)Strengthen oversight of government subsidies.(3)Improve enterprise accounting standards for government subsidies disclosure.(4)Establish and improve the professional manager market.(5)Optimize the compensation incentive mechanism.The innovation and contribution of this paper are as follows:firstly,this paper empirically tests the effect of management ability on the relationship between government subsidies and enterprise performance in discussing the effect of government subsidies on the performance of listed companies in strategic emerging industries.From the perspective of management ability,this paper creatively studies and analyzes the application effect of government subsidies,so as to further put forward targeted feasible suggestions to promote the government subsidies of strategic emerging industries to be more effectively applied to the company's operation and development.Secondly,according to the existing literatures,the literatures on the economic consequences of management ability are mostly from the aspects of management background characteristics,management power and management heterogeneity.However,the related research on management ability started late and there are few empirical studies.This paper provides new empirical evidence for the study of the economic consequences of management ability on enterprises.