The Impact Of Government Subsidies On The Financial Performance Of New Energy Vehicle Enterprises

At present,under the background of energy saving and emission reduction strategy,the automotive industry has actively taken action to respond to the call of the national dual carbon policy and gradually transfer from high carbon emission and high energy consumption industries to low-carbon emission or even zero carbon emission and resource-saving industries.Among many types of vehicles,new energy vehicles,as the representative of low-carbon emission or even zero emission,use renewable energy as driving fuel,which not only effectively promote the development of China’s automobile industry,but also achieve the purpose of environmental protection and energy conservation.However,at the beginning of its development,the new energy vehicle industry is faced with problems such as high R& D and production costs,high market price,difficult promotion and lagging construction of supporting facilities.In order to promote the rapid development of new energy vehicles,the government has issued a series of subsidy policies since 2009,providing a large amount of subsidy support funds to the new energy vehicle industry,of which hundreds of billions of subsidies have been distributed to new energy vehicle enterprises.Have the hundreds of billions of subsidies issued had an impact on the financial performance of new energy vehicle enterprises? If there are impacts,are these impacts good or bad for the financial performance of new energy vehicle enterprises? After the decline of government subsidies in 2017,what is the impact of government subsidies on the financial performance of auto enterprises? In view of this series of problems,this paper studies the impact of government subsidies on the financial performance of new energy vehicle enterprises.After sorting out the relevant literature on the subsidy policies of new energy vehicles at home and abroad and the impact of government subsidies on financial performance,this paper defines the concepts of new energy vehicles,government subsidies and financial performance,and on the basis of relevant stakeholder theories and the introduction of subsidy policies of new energy vehicles at home and abroad,Analyze the impact of government subsidies on the financial performance of new energy vehicle enterprises from the micro enterprise individual level and industry level.Firstly,by selecting SAIC Group,the first enterprise in the new energy vehicle industry to obtain subsidies and a large amount of subsidies,as the case study object,this paper makes a specific analysis on the impact of government subsidies on financial performance from the individual level;Secondly,through the selected panel data of new energy vehicle industry,this paper makes an empirical analysis on the impact of government subsidies on financial performance from the macro industry level.The main conclusions are as follows;First,from the results of industry empirical analysis,before the decline of government subsidies in 2017,government subsidies had a significant positive impact on the financial performance of new energy vehicle enterprises,but after the decline of government subsidies in 2017,government subsidies had no significant negative impact on the financial performance of new energy vehicle enterprises;Second,from the case specific analysis results,before the decline of subsidies,on the one hand,government subsidies can improve the financial indicators such as profits and cash flow of enterprises,so as to improve the financial performance.On the other hand,government subsidies can promote the growth of new energy vehicle sales and the improvement of the R & D and production level of enterprises,so as to improve the financial performance.However,after the decline of subsidies,the amount of subsidies is reduced and the subsidy threshold is increased,the positive impact of government subsidies on new energy vehicles is weakened,and most government subsidies are concentrated on the sales side.According to the "rentseeking theory",in the long run,the "blood transfusion" subsidies may lead to enterprises’ excessive dependence on subsidies and "Rent-seeking" behavior,which will have an adverse impact on the financial performance of enterprises.In the decline period,This negative impact is becoming more and more obvious.Therefore,after entering the declining period of subsidies,the impact of government subsidies on the financial performance of new energy vehicle enterprises has changed from obvious positive effect to weak negative effect.Finally,for example,put forward some reference suggestions on promoting the development of new energy vehicle industry from the government and vehicle enterprises.