Research On The Impact Of Government Subsidies On Innovation Investment Of High-tech Enterprises From The Perspective Of Ownership Concentration

Chinese economy has surged into a stable-growth state,where the quality of development receives more attention than rapidity.Innovation has become the main motivation of industrial upgrading and high-quality economic development.To relieve the financial stress of technological innovation,the policy for subsiding high-tech enterprises has been operated in China.The innovation enthusiasm of shareholders and managers is mainly influenced by the agency problem derived from ownership concentration.Thus,this paper explores the effect of government subsidy on enterprise innovation input from the perspective of ownership concentration.Since Joseph Schumpeter put forward the innovation theory,there has been active discussion on enterprise innovation in the academic circle.Many scholars believe that government subsidies can encourage high-tech enterprises to increase their innovation input.An in-depth study of this paper found that government subsidies achieve motivation mainly through easing the financing constraints in enterprise innovation,reducing innovation risk and sending a positive signal to the market.However,the innovation input will be crowded out by government subsidies because of rent-seeking and insufficient supervision.The ownership concentration of enterprises can adjust these problems.The government subsidy can promote the increase of innovation input,and maximize the incentive effect,only when the enterprise equity is moderately concentrated.To verify the theoretical mechanism of this paper,the threshold effect of government subsidies and ownership concentration on firm innovation input,and the relationship between government subsidy and the innovation input based on equity concentration threshold were explored according to the data of high-tech listed companies from 2012 to 2020.Through the threshold regression and the robustness test,the empirical results show that: i)the government subsidy can promote the innovation input of high-tech Enterprises and the incentive effect is strongest only when the subsidy is moderate;ii)only when the ownership concentration ratio of high-tech enterprises is less than 44.9% can innovation input be promoted;iii)only when the ownership concentration ratio of high-tech enterprises is less than 44.9% can the government subsidy play an incentive role,and the incentive effect is greatest with12.3%,but government subsidies crowd out anything once ownership concentration above 44.9%;iv)only when the ownership concentration of state-owned enterprises is less than 42.9% can government subsidies play an incentive role.When the ownership concentration ratio of private enterprises is between 12.7% and 44.8%,the government subsidy has the greatest incentive effect.In summary,some suggestions are put forward: i)flexibly adjust government subsidies to give full play to the role of incentive lever;ii)optimizing the ownership concentration degree and distributing the government subsidy differentially;iii)strengthening the incentive of senior managers to promote the innovation enthusiasm of enterprises;iv)establishing the post-supervision mechanism,cracking down on rent-seeking.