Government Subsidies,Green Technology Innovation And Financial Performance

In recent years,China’s social and economic development has been fast,and tremendous advance and achievements have been made in many fields.However,environmental pollution has become increasingly serious,and carbon emissions have increased year by year.Under the current environmental situation,while developing economy,more attention should be paid to environmental protection,energy saving and low-carbon development.For China’s environmental problems,the heavy pollution industry is the top priority,by the country and the community’s extensive attention,take the road of green development is urgent.Therefore,heavy polluting industries need to actively fulfill their environmental responsibility and ensure the improvement of corporate financial performance while carrying out environmental protection.Green technology innovation plays an important role in this process.In order to ensure that the green technology innovation of heavy polluting industries will not impact the operation and development of enterprises,the national and government have introduced a series of policies to provide government subsidies to enterprises engaged in green technology innovation,so as to encourage enterprises to actively carry out environmental protection.This paper takes 537 A-share listed companies in heavy pollution industries as the research samples and selects the data of government subsidies,green technology innovation and financial performance from 2015 to 2020 to conduct empirical research.It finds that government subsidies can significantly improve financial performance,and green technology innovation plays an intermediary role.The effect of government subsidies on green technology innovation is obviously promoting,but its promotion effect does not continue to increase.As the intensity of government subsidies increases,the role of government subsidies in promoting green technology innovation is gradually decreasing.Further to the different nature of the property,whether to participate in the carbon emissions trading and enterprise in different life cycle analysis found that the different nature of property rights and whether to participate in the carbon emissions trading companies,both financial performance and green technology innovation are significantly promoted by government subsidies,threshold effect of the government subsidies for green technology innovation all through the dual threshold test,But there are differences between promotion effect and threshold value.From the perspective of life cycle,the effects of government subsidies on green technology innovation in the growth,mature and decline phase· s are significant,while the impact of government subsidies on financial performance is only significant for enterprises in the growth phase and mature phase.In terms of the threshold effect of government subsidies on green technology innovation,enterprises in the growth phase and mature phase pass the double threshold test,while enterprises in the decline phase do not pass the threshold effect test.Through this study,it is found that the financial performance and green technology innovation ability of enterprises can be improved after the heavy pollution industry receives government subsidies.In order to ensure the maximum promotion effect of government subsidies on green technology innovation and avoid crowding out effect,the intensity of government subsidies should be strictly controlled.For enterprises with different property rights,whether to participate in carbon emission trading or in different life cycles,relevant policies should be formulated according to the actual situation and combined with other environmental regulation policies on the basis of government subsidies,so that government subsidies can play a maximum role in the financial performance and green technology innovation of enterprises.