The Impact Of Financial Subsidies On The Performance Of New Generation Information Technology Industry Enterprises Impact Research

In recent years,the new generation of information technology industry has increasingly become the focus of competition among countries around the world to promote scientific and technological progress and to promote the development of comprehensive national power.The importance that the State attaches to the development of the new-generation IT industry is reflected in the release of the Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries in 2018,which proposes that China should focus on cultivating and developing seven strategic emerging industries,including the new-generation IT industry,at this stage,and specifies that the new-generation IT industry should be developed into a pillar industry of the national economy by 2020.As enterprise activities are characterised by public goods as well as externalities,fiscal policies that use fiscal subsidies as the main means to incentivise enterprise performance improvement are particularly important.Therefore,it is important to study the effect of China’s government financial subsidy policy on the performance of new-generation information technology enterprises and its mechanism of action,in order to promote the development of new-generation information technology industry and formulate appropriate financial subsidy policies.This article studies the impact of financial subsidies on the performance of new generation information technology companies from the perspective of corporate niche.First,review domestic and foreign literature,sort out the promotion and suppression of government subsidies on corporate performance,and the threshold effect of government subsidies,clarify the concepts of the new generation of information technology industry,as well as niche and corporate niche,and propose theoretical assumptions based on relevant theoretical foundations.Secondly,construct static and dynamic panel models to empirically test the impact of financial subsidies on the performance of enterprises in different niches,using the data of new generation information technology industry listed companies from 2008 to 2020 as a research sample.Thirdly,construct a threshold model for further analysis to study the financial subsidy intervals for enterprises with different ecological niches.Finally,based on this,some countermeasures and suggestions are proposed to improve the effectiveness of financial subsidies.This paper finds that:(1)on the whole,government subsidies promote the performance of enterprises in the new generation IT industry;and have a certain lag.(2)There are differences in the improvement of enterprise performance of enterprises located in different ecological positions,specifically in that it has the greatest contribution to the improvement of enterprise performance in high ecological positions and the least contribution to the improvement of enterprise performance in low ecological positions.(3)Using financial subsidies as a threshold variable,we find that there is a double threshold effect of government subsidies on firm performance,and this threshold effect differs across firms in different ecological niches.The research in this paper enriches the academic results on the impact of government financial subsidy policies on firm performance.