Research On The Impact Of Financial Subsidies On Corporate Performance Of Listed Companies In Jiangsu Province

Scientific and technological innovation has become an important force that affects the well-being of a country’s people,national rejuvenation,and prospects and destiny.The special subsidies provided by the financial department to support enterprises in carrying out research,development,and technological innovation projects have always been of great concern to all sectors of society.In recent years,the government departments have strengthened their supervision over policies such as the amount of financial subsidies and tax incentives,which is more conducive to the effectiveness of financial subsidies.How to better improve the effectiveness of government financial subsidies,promote enterprise performance through financial subsidies,and promote high-quality development of enterprises and the economy is a problem that we must pay attention to.Based on the analysis of financial subsidy policies in Jiangsu Province,this article selects 316 listed companies in Jiangsu Province from 2011 to 2020 as a sample to study the impact of financial subsidies on corporate performance and the path.Firstly,it analyzes the current situation of financial subsidies issued by departments at all levels in Jiangsu Province.Secondly,a panel fixed effect model is constructed to empirically study the impact of financial subsidies on enterprise innovation performance and financial performance.Thirdly,selecting internal R&D investment as an intermediary variable,we establish a mediation effect model to study the role of R&D investment between financial subsidies and the level of innovation output of listed companies.Finally,it proposes countermeasures and suggestions to enhance the effect of financial subsidies.The study found that financial subsidies have a significant positive effect on the level of innovation output of enterprises,and financial subsidies significantly promote innovation performance of enterprises;Financial subsidies have a significant positive effect on the level of financial performance of enterprises,and the increase of financial subsidies will promote the improvement of the level of financial performance of enterprises;Research and development investment plays a partial intermediary role between financial subsidies and enterprise innovation output.