The Impact Of Government Subsidies On Corporate Performance

At the current moment,China’s economic development has entered a new normal and gradually transformed into high-quality development.In order to accelerate the construction of an innovative country and improve its competitiveness in the international arena,in recent years,the government has focused on the development of high-tech enterprises,used subsidy policies to improve corporate activities,stimulated independent innovation capabilities,and helped promote the further development of enterprises.As the leader of technological innovation,high-tech enterprises have advanced technological level and strong innovation ability,and their government subsidies are greater than other enterprises.However,the impact of the government’s support policies and the large amount of government subsidies allocated each year on corporate performance has always been debated by the academic community.So what kind of benefits does the large amount of government subsidies bring to the enterprise? or a mismatch of resources? These issues are worthy of further discussion.Therefore,this paper selects SANAN OPTOELECTRONICS CO.,LTD.,a leading high-tech enterprise in the semiconductor industry,as the research object.Based on its annual report data from 2016 to 2021,it focuses on the scale,reasons and projects of government subsidies for enterprises to study their impact on corporate performance and draw conclusions.At the same time,relevant suggestions are put forward for enterprises and governments.In terms of financial performance,this paper first uses GRA(Grey Correlation Method)to evaluate the overall financial indicators of the enterprise,and then studies the impact on the financial performance of the enterprise by analyzing the specific indicators,comparing the industry average and the changes of relevant financial indicators after deducting government subsidies.In terms of non-financial performance,this paper mainly studies its innovation performance.Firstly,it evaluates the impact of government subsidies on innovation performance through DEA model,and then selects relevant indicators to evaluate the innovation input and innovation output efficiency of government subsidies to SANAN.The results show that in terms of financial performance,large-scale government subsidies have played a direct positive role in promoting the profitability and growth ability of enterprises.By improving the indirectness of financing ability,it has a positive impact on short-term solvency,but has a weak impact on operating ability,and has little impact on long-term solvency and cash flow indicators of enterprises.In terms of innovation performance,it is found that government subsidies have a significant incentive effect on the innovation input indicators of enterprises,while the impact on the number of patent applications in innovation output and the formation of intangible assets through internal R&D is not significant in the early stage,but it shows a significant incentive effect in the later stage.In general,the impact of government subsidies on the performance of SANAN is more positive than negative.Based on this,in order to further improve the efficiency of China’s current financial subsidies,optimize the allocation of enterprise resources,and strive to maximize the positive effects of government subsidies,this paper puts forward the following suggestions:the government should pay attention to cultivating the innovation ability of enterprises when allocating subsidies.At the same time,the government should follow up and supervise the use of the amount of enterprise subsidies;enterprises should pay attention to improving their own management ability,make rational use of government subsidies,reduce dependence,improve their independent innovation ability,and ensure their long-term development.