Research On The Realationship Of The Government Subsidies And The Total Factor Productivity Of Enterprises

Over the past four decades of reform and opening up,China has made great progress in its economic and social development.But while we are proud of such great progress,we must also see the dangers and opportunities hidden in the other side of China’s rapid economic development.With the decline,the economy has entered a new stage of high-quality development.To achieve industrial transformation and upgrading,and improve the core competitiveness of Chinese enterprises,we must increase our efforts in R & D and innovation to increase the enterprise’s total factor productivity.The report of the 19 th National Congress of the Communist Party of China clearly pointed out that in order to promote the reform of China ’s economic development in terms of quality,efficiency and power,it is necessary to increase the level of total factor productivity.In order to improve the total factor productivity of enterprises,we should give full play to the decisive leading role of the market system in the process of social factor resource allocation and highlight the leading role of var ious economic entities such as enterprises.And it also needs the government’s economic management departments to introduce relevant support and guidance policies to avoid the efficiency loss caused by market failure.Government Subsidies are a common form of support among the government’s options.However,the research on the economic consequences of the subsidy policy has not yet been finalized,and there is no research on whether the effect of the further subsidy policy will be affected by the specific i nternal control level of the specific enterprise and the product market competition factors.This article studies the method of combining theoretical analysis and empirical research.First of all,the company’s total factor productivity,government subsidies and other related concepts,as well as basic theories such as technological innovation theory,market failure theory,principal-agent theory and information asymmetry,and signal transmission theory are explained.Secondly,the relationship between government subsidies and the enterprise’s total factor productivity and the impact of different levels of internal control quality and product market competition on this relationship are explained and combed separately,and research hypotheses are proposed based on the theoretical analysis.Finally,construct an empirical model based on the proposed research hypothesis design,take the 2010-2018 A-share listed company data as the sample research object,and introduce the panel threshold model to study the impact of different levels of internal control quality and product market competition intensity of the relationship of government subsidies and enterprise total factor productivity.Research results show that under the influence of different internal control quality and product market competition intensity,there is a non-linear threshold effect between government subsidies and enterprise total factor productivity,specifically:(1)When the internal control quality of the enterprise is low,Government subsidies have a negative correlation with the enterprise’s total factor productivity;when the internal control quality of the enterprise is high,government subsidies have a positive correlation with the enterprise’s total factor productivity;when the enterprise’s internal control quality is between high and low,government subsidies Although the enterprise’s total factor productivity presents a positive correlation,it is not statistically significant;(2)When the product market competition intensity faced by the enterprise is low,government subsidies and the enterprise’s total factor productivity show a negative correlation;when the enterprise faces the product When the market competition intensity is large,although government subsidies and the enterprise’s total factor productivity still show a negative correlation,this negative correlation weakens as the competition intensity increases,and is no longer statistically significant.Based on the above research results,this paper believes that the government should choose the subsidy target with more targeted and more targeted subsidies,such as considering the industry’s competitive intensity and the company’s own internal control level to subsidy,in order to improve the efficiency of the use of subsidy funds and the effect of subsidy policies,it will promote the improvement of the total factor productivity of Chinese enterprises.