Research On The Impact Of Government Subsidies On The Financial Performance Of Listed Environmental Protection Enterprises

In order to meet the challenges of global climate change and the upgrading of the energy structure,governmen ts at all levels h ave vigorously promoted environmental protection and ecological civilization,vigorously developed the environmental protection industry,and increased policy support for environmentally-listed companies,and adopted financial subsidy reforms for environmentally-listed companies.F urther pr omote the transformation and upgrading of the environmental protection industry.Since the 19th National Congress of the Communist Party of China,environmentally-protected listed companies have taken technological innovation as the driving force,and the industrial scale h as expanded rapidly,en tering a golden opportunity period for development,which has increasingly become the most promising bright sp ot and pillar industry under the new normal of the economy.The State Council officially listed energy-saving and environmental protection enterprises as strategic emerging industries.It is estimated that by 2025,the scale of China’s environmental protection industry is expected to exceed 10 trillion,becoming an important constituent industry of China’s national economy.However,the development of China’s environmentally-protected listed companies still faces many problems,such as a small scale,low industrial concentration,weak independent innovation capability,low R&D investment difficult corporate financing,low financial performance,and great policy impact.Its development potential has not yet been effectively released.Then,it needs to be further clarified.What is the effect of government subsidies on the financial performance of environmentally-protected listed companies?How to measure the impact scientifically and effectively?How does the government support the most efficient listed environmental companies?The above questions need to be answered more rigorously and carefullyBased on the research logic of theoretical analysis-research scheme design-data collection-empirical analysis-discussion of results,this paper selects 84 listed A-share environmental protection industry listed companies as research samples and conducts empirical tests on the proposed theoretical hypotheses.The main work is summarized as follows:First,construct a theoretical analysis dimension.From the perspective of externality theory,sustainable development theory,and Pigou tax theory,the necessity of government subsidies for the development of environmentally-protected listed companies is analyzed.Based on the existing government subsidy policies,the government tries to increase the available funds of environmentally-protected listed companies and reduce their Financing costs,stimulating environmentally-listed companies to increase R&D investment,technological innovation,and talent training explore the mechanisms by which government subsidies affect the performance of environmentally-listed companies,and then build an analytical framework for the effects of government subsidies on the environmental performance of environmentally-listed companies Second,design empirical research programs.This article selected the data of 84 listed A-share environmental protection industry companies listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2015 to 2018 through the Guotai’an database,and used the"industry category" and "main business income" disclosed in the annual reports to compare one by one.Panel data that make up the study.Based on the description of corporate financial performance,taking the nature of corporate ownership,the industry in which the company is located,the size of the company,and the shareholding ratio of the top three shareholders as control variables,whether government subsidies can affect business performance and how to affect business performance An empirical analysis is made;on this basis,it is further discussed whether the efficiency of financial subsidies between state-owned holding companies and non-state holding companies is heterogeneous.Third,empirical research finds that:government subsidies can promote the performance of environmentally-friendly listed companies,but government subsidies only have a significant positive effect on current corporate performance,but they cannot effectively promote corporate performance in lagging periods;Non-state-owned environmentally-friendly listed companies are slightly inadequate in using government subsidies to improve their performance;the industry in which they operate affects the relationship between government subsidies and the performance of environmentally-friendly listed companies.Based on the results of empirical research and analysis,this article points out that the direction of government subsidies for environmental protection listed companies should be strengthened,but more specific methods and objects can be optimized.For example,the government subsidies of non-state environmental protection enterprises can be strengthened;subdivided subsidies for different industries;optimizing the policy decision-making process;establishing a variety of government subsidy methods,and issuing government subsidies through third-party agencies;introducing social capital and increasing government Sources of subsidy funds,etc.