| As a national strategic emerging industry,the new energy vehicles play an important role in the sustainable development of China’s economy.Therefore,the government has issued a large number of industrial policies to support the development of domestic new energy vehicle industry,including the promotion and application subsidy policy of new energy vehicles.The promotion and application subsidy is the government’s subsidy to consumers,but it is directly distributed to enterprises,which has an important impact on the performance of new energy vehicle enterprises.However,with the advent of the subsidy decline after 2016,the performance of domestic new energy vehicle industry has declined significantly,which means that China’s new energy vehicle enterprises may have excessive dependence on subsidies and insufficient earnings persistence.It is worth noting that although the earning decline is the overall trend of the industry,there are still some enterprises with relatively stable performance,they seem to perform better during the subsidy decline.Therefore,this paper believes that it is necessary to study the earnings persistence of new energy vehicle enterprises under the background of subsidy decline,analyze the impact of subsidy decline on the industry earnings persistence,study how high-quality enterprises maintain high earnings persistence under the background of subsidy decline,and put forward countermeasures for new energy vehicle enterprises to maintain earnings persistence in response to subsidy decline.Firstly,this paper expounds the related concepts of subsidy decline and earning persistence,and analyzes the influence mechanism of subsidy decline on enterprise earning persistence from the theoretical level.Secondly,according to the influencing factors of earnings persistence,this paper constructs a comprehensive evaluation system of earnings persistence,selects the data of 18 new energy vehicle manufacturing enterprises from 2013 to 2019 as samples,determines the index weight by using entropy weight method,and analyzes the earnings persistence of sample enterprises and the industry as a whole.Through the vertical comparison of earnings persistence of industries before and after the decline of subsidies,this paper verifies the negative impact of the decline of subsidies on the earnings persistence of enterprises,and through the horizontal comparison within the industry,it selects the enterprises that can maintain high earnings persistence under the background of subsidy decline.Thirdly,this paper selects Yutong Bus and Jinlong automobile as the case study object,compares the earnings persistence performance of the two enterprises under the background of subsidy decline,and explains the causes of the difference in earnings persistence of the two enterprises from three aspects of R & D innovation ability,financial ability and risk control ability,and summarizes how high-quality enterprises maintain earnings persistence.Finally,this paper summarizes the experience and shortcomings of the case company,and puts forward countermeasures for the new energy vehicle enterprises to maintain the sustainability of the surplus in response to the subsidy decline.The main conclusions of this paper are as follows.Firstly,the industry’s earnings persistence declines significantly after the subsidy decline.This is because the subsidy decline will lead to the deterioration of the capital structure,the decline of core profitability,stability of profits and the fluctuation of cash earning ability,which lead to the decline of earnings persistence.However,the Matthew effect also appears in the industry,which means some enterprises can still maintain high earning persistence.Secondly,Yutong Bus and Jinlong automobile have different earnings persistence due to the following reasons:(1)Yutong has stronger R & D and innovation ability;(2)Yutong has stronger financial ability,that is,Yutong has stronger accounts receivable financing ability,centralized fund management ability and automobile financial strength;(3)Yutong has stronger risk control ability,that is,Yutong’s compliance risk and credit Risk control ability is stronger.Taking advantage of these reasons,Yutong Bus can effectively resist the subsidy decline and maintain high earning persistence.Thirdly,we believe that the new energy vehicle companies can use the following strategies to fight against subsidy decline and to maintain earning persistence:(1)R&D strategy,that is,to strengthen internal R&D integration and seek external R&D cooperation;(2)financial strategies,that is,widening the financing channels,strengthening centralized fund scheduling and developing supply chain finance;(3)risk control strategy,that is,strengthening the self check of subsidy declaration and strengthen the customer’s credit review. |
