Research On The Impact Of Government Subsidies On The Investment And Operation Of China’s Listed X Ev Companies

Since the 21 st century,x EV has gradually gotten popular in the market due to its significant advantages of energy saving and emission reduction and environmental friendliness.The Chinese government takes supporting x EV industry as a national strategy,using the government subsidy policies to promote the development of x EV industry.However,defects of the policies have resulted in serious subsidy cheating.Since 2019,the government had significantly adjusted the subsidy policies,which had a significant negative impact on investment and operation of enterprises and market consumption.Therefore,in order to study the impact of government subsidies on the investment and operation of China’s listed x EV companies,this paper conducts research from three aspects of enterprise R&D input,external investment and operating performance through empirical analysis.Theoretical research shows that government subsidies are a means to support the positive externalities of the investment and operation of listed x EV companies,incentive effect varies when subsidy is implemented in different ways.At the same time,government subsidies can solve the externalities of R&D of listed x EV companies,provide a good signal to the market and give confidence to R&D input,thus affecting the increase of R&D input of those companies.When government subsidies exceed a certain level,it will result in a crowding-out effect on subsidy policies,leading to a decline in R&D input.Therefore,the paper argues that government subsidies have insignificant negative impact on the short-term operating performances of listed x EV companies and significant negative impact on the long-term.An empirical analysis based on relevant data of listed x EV companies from 2013 to 2019 has been conducted,the results of which show that:(1)The increase of government subsidies can promote the increase of R&D input.However,government subsidies help to increase R&D input in the short term,the role of government subsidies in R&D input begins to weaken and then shows a downward trend after a certain period of development.(2)Government subsidies have a significant positive impact on external investment and an intermediary effect on the R&D input,R&D input can be increased by external investment.(3)Government subsidies have a but not very significant impact on companies’ ROE,which is mainly related to the fact that government subsidy policies focus on consumption subsidy in China.Both enterprise scale and debt-paying ability have significant impact on companies’ ROE.To ensure government subsidies fully promote the development of listed x EV companies in a much healthier way,countermeasures and suggestions including improving government subsidy policies,adjusting government subsidy structure,strengthening the infrastructure construction and optimizing subsidy supervision system have been made in the paper,hoping to better achieve the strategic goal of the development of x EV industry.