Research On Asymmetric Information Effect Evaluation In Government Subsidy And Its Economic Effect:Empirical Evidence From Chinese Listed Firms

On the condition of information asymmetry, government and enterprises will have a negotiation over the amount of subsidy, government would try to provide less,while enterprises would always expect to obtain more. Thus, they would carry out a fierce game on this issue, both the government and enterprises will make full use of their advantage to occupy the expected residual subsidy of the other. It follows that the amount of subsidy is an integrated result of the occupation behavior of the government and enterprises. Both theory and practice field have reached consensus:government subsidy has an effect on the performance and efficiency of enterprises, thus the occupation behavior will have an indirecteffect on the performance and efficiency of enterprises by affecting the amount of subsidy. This paper quantitatively evaluated the asymmetric information effect in government subsidy and its economic effect, which is doubtless helpful to deepen the understanding on subsidy decision and its related mechanisms, the final results is as follows:(1) The occupation behavior of the government and enterprises has an important influence on subsidy. This paper estimated the scales of the surplus occupied by the government and enterprises quantitatively through constructing a two-tier stochastic frontier model, and further analyzed their impacts on the decision-making of government subsidy.The results showed that:the determined subsidy is lowered by 51.15% due to the surplus occupation of government, and is raised by 20.06%due to the surplus occupation of enterprises, thus, the determined subsidy is lowered by 31.09% totally. Moreover, the surplus occupation effect showed strong heterogeneity on the dimension of time, space, the attribute of ultimate owners and enterprise’scale.(2) Subsidy has a significantly effect on the performance and efficiency of enterprises. The paper quantitatively estimated the direct effects of subsidy on the performance and efficiency as the foundation of the following estimation on the indirect effects. The empirical results based on PSM showed that:government subsidy promoted enterprises’ performance significantly, but cause inefficiency in enterprises simultaneously. Moreover, the effect showed strong heterogeneity on the dimension of region and the attribute of ultimate owners.(3) Under the asymmetric information environment, the occupation behavior of the government and enterprises has a significant indirecteffect on the performance and efficiency of enterprises.By using threshold panel data model, we empirically studied this indirect effect. In our model, the performance or efficiency of enterprises is set as the explained variable, government subsidy is set as the key explanatory variable, and surplus occupation of government, surplus occupation of enterprises and the net surplus are set as the threshold variables. The empirical results showed that:(a)when the occupation capacity of government is week, or the capacity of enterprises is strong, government subsidy will have a positive effect on the performance of enterprises, otherwise, it has no significant effect on the performance; (b)when the occupation scale of government is small, or the occupation scale of enterprises is large, the government subsidy will have a negative effect on the efficiency of enterprises, otherwise, it has no significant effect on the efficiency.