Research On The Impact Of Government Subsidies On BOE's Corporate Financial Performanc

At present,China is in the period of "14th Five-Year Plan",the state has introduced a series of policies to guide and support listed companies in order to maximize the social and economic benefits of enterprises,and the government’s financial subsidies have become an important force and support force for the development of listed companies in China.The government is fully committed to the sustainable development of high-tech listed companies,which plays an important role in guiding the direction of economy,maintaining social stability and creating jobs.However,in the long run,it needs to be further explored whether government subsidies can bring sustainable cash returns to the company’s operation.Therefore,in-depth consideration should be given to the following aspects: What is the impact of the government’s financial support on the operating performance of high-tech enterprises and how much does it contribute to the long-term operation of high-tech enterprises?BOE,as the leader of high-tech enterprises in China,has more government subsidies.On the basis of studying the reasons,forms and scales of government subsidies received by BOE enterprises,the impact of government subsidies on BOE enterprises’ financial performance in the current period is analyzed,and a financial performance index system is constructed using the entropy value method,and then,a comparison is made to analyze how the company’s financial performance changes before and after deducting BOE’s government subsidies.Finally,an analysis of how lagged government subsidies affect BOE’s corporate financial performance is conducted.The government subsidies of lagged period one and lagged period two are regressed on the composite score of financial performance calculated by entropy method,and it is found that government subsidies of lagged period two have a significant relationship with financial performance.The study shows that government subsidies have a positive impact on BOE’s financial performance,and its financial performance shows an increasing trend year by year.At the same time,the impact of government subsidies on financial performance has a certain lag.Based on this,the following suggestions are made to enterprises:(1)strengthen the internal supervision of government subsidies(2)improve the utilization efficiency of government subsidies(3)reasonably increase the investment in research and development(4)strengthen the cost control power;the following suggestions are made to the government(1)clarify the direction of government subsidies(2)strengthen the supervision of government subsidies(3)improve the performance evaluation system of government subsidies(4)Improve the information disclosure system of government subsidies.