Research On The Impact Of Government Subsidies On The Performance Of Dongjiang Environmental Protection Company

With the development of economy in China gradually entering a new stage,the problems of environmental pollution and inefficient use of resources caused by the original development mode have brought bad effects on the sustainable development of economy.In the process of deepening the national economic structure transformation goal and the concept of green development,the government has gradually increased its attention to the environmental protection industry,and the industry policies and financial funds continue to increase.Therefore,government subsidies,as a direct and quick way,are being widely used by the government in the development process of environmental protection enterprises,so as to provide assistance to their operations and research and development activities.In this context,this article takes Dongjiang Environmental Protection Company,a typical enterprise in the environmental protection industry,as an example to study the impact of government subsidies on the performance of environmental protection enterprises,analyze the effects and existing problems of the current use of government subsidies by environmental protection enterprises,and add specific conclusions to the existing research.Based on signal transmission theory,government intervention theory and externality theory,this article uses literature research method,comparative analysis method and case study method to conduct a comprehensive discussion on the impact of government subsidies on the financial performance and R&D performance of Dongjiang Environmental Protection Company.This article finds that the company mainly has the following problems: firstly,the company uses government subsidies to whitewash the company’s profits;secondly,the company relies excessively on government funds,which affects cash flow and accounts receivable;thirdly,the company uses subsidies with low efficiency and develops the segmented industries slowly;fourthly,over-reliance on technology research and development subsidies,affecting the pace of independent research and development;fifthly,low R&D efficiency leads to waste of government subsidy resources.This paper further draws the following two conclusions: Primarily,the input of government subsidies can have a certain positive impact on the performance of Dongjiang Environmental Protection Company.Firstly,government subsidies reduce the financing pressure of the enterprise by improving the capital level of the enterprise’s business activities,and beautify the financial performance of the enterprise;secondly,government subsidies can improve the level of capital and human resource invested by the enterprise in R&D activities,so as to promote its R&D performance.At the same time,Dongjiang Environmental Protection also exposed some problems in the process of using government subsidies.Firstly,the enterprise has a high dependence on government subsidies,and the subsidy funds have a whitewash effect on the financial performance of the company and affect the decision-making of managers;secondly,the enterprise has low efficiency in using government subsidies and low awareness of independent innovation;thirdly,the enterprises’ disclosure of government subsidy information is not thorough enough.Based on the research results,this article puts forward the following suggestions: Firstly,enterprises should reduce the dependence on government subsidies and strengthen the ability of independent development;next,enterprises should closely follow the policy guidance and make efficient use of subsidy funds;finally,enterprises should strengthen the disclosure of government subsidy information.In order to improve the efficiency of government subsidies,this article hopes to analyze and suggest the current situation of government subsidies,so as to provide help for the development of environmental protection enterprises.