Study Of Government Subsidies' Impact On R&D Investment Behavior And Value Creation

Different from the traditional industries,the core competitiveness of the strategic emerging industries is independent innovation capability.Financing constraints and weak intellectual property protection prevent the strategic emerging industries developing.Government intervention and guidance has become the key point of strategic emerging industry enterprises to crack down on the financing constraints and knowledge spillovers and other development bottlenecks.With the continuous increase of government subsidies,the enthusiasm of enterprises to for R&D is on the rise,and then R&D expenditure accounted for the proportion of corporate spending continues to expand.Does R&D investment have positive effect on the business performance and future valuation to promote the development of enterprises?Whether government subsidies play an active role in the R&D investment and corporation value is an urgent question to research.To explore these problems,this study has a certain theoretical significance and practical value to enrich and improve the impact of government subsidies on R&D investment behavior and R&D performanceThe existing research pays less attention to the systematic research on enterprise R&D investment behavior decision-making and enterprise performance output under government subsidies,which makes the analysis of government subsidies lack of theoretical basis for enterprise R&D investment behavior decision-making,and lacks enterprise R&D investment behavior decision-making for strategic emerging industries.And a comprehensive discussion of the non-linear effects of government subsidies and corporate R&D investment on corporate performance under differentiated external influences.Based on this,this paper takes 6648 samples of 739 strategic emerging companies from 2009 to 2017 as the research object,The system studies the impact of corporate R&D investment on firm performance,the impact of government subsidies on R&D investment,and the impact of government subsidies and R&D investment on firm performance.This paper also pays attention to the long-term financing constraints of financial development constraints and the lack of intellectual property protection,construct a theoretical framework for the impact of government subsidies and corporate R&D investment on corporate performance under the external factors represented by financial development level and intellectual property protection.Reveal the structural mutations that may be brought about by the original model under the continuous improvement of external environmental factors,explain the incentive effect or crowding out effect of government subsidies on the value of R&D investment,and provide a new theoretical idea for understanding the reasons for the lack of government subsidies and corporate R&D investment.The main work and conclusions of the paper are as follows:(1)Systematically sort out China's strategic emerging industry R&D investment from various perspectives such as overall characteristics,industry characteristics,regional characteristics and other dimensional characteristics,on this basis,theoretical analysis and empirical tests are carried out on the mechanism of corporate R&D investment affecting corporate performance.The empirical results show that the impact of corporate R&D investment on the performance of current enterprises is not significant,and there is a significant lag.The enterprise R&D investment is quickly reflected in the current value increase through the signal transmission effect,but the conversion of R&D investment results is lagging,and its performance is reflected in the second phase of the lag.Only when the new product is put into the market to gain market share,R&D The business performance can be achieved.In the 9 categories of industries,energy conservation and environmental protection,high-end equipment manufacturing,and other service industries showed a significant positive correlation between the R&D investment and corporate performance in the current period,and the coefficients were large.The R&D investment had a positive effect on the positive performance of the enterprise.The new generation of information technology and bio-industry R&D investment show a strong lag to the impact of corporate performance,showing a significant positive effect in the lag period.The bio-industry and the new-generation information technology-oriented enterprises have slower development results,which are generally limited by the development cycle.Only when newly developed products are put into the market and gradually occupy the market share of the original products,the enterprise performance will gradually emerge.Therefore,the current R&D investment is obviously manifested in the lagging performance of the first and second phases.(2)Establish a dynamic cooperative game model of government subsidies and corporate R&D investment behaviors,analyze the basic principles and influencing factors of government subsidies affecting the choice of R&D investment behaviors,and plan and solve the objective income maximization of participants,and analyze China's strategic emerging industries.How does the Chinese government subsidy affect the optimal decision-making of the participants' behavior,and empirically tests the influencing factors of the government subsidy's R&D incentive effect(crowding out effect),in order to explore the government subsidies,it provides a theoretical basis for the micro-mechanism that influences the decision-making of corporate R&D investment behavior and ultimately on corporate performance.The empirical results show that there is a significant non-linear relationship between government subsidies and corporate R&D investment,and the performance of different industries is different.For energy conservation and environmental protection,new generation information technology,new materials,and other service industries,the current enterprise R&D investment and government subsidies show a "positive U-shaped" relationship,while in the second phase of the lag,an "inverted U-type" relationship is presented.In the three types of industries,namely,new energy,new energy vehicles,and digital entrepreneurial industries,the R&D investment of enterprises in the current and late periods is in an "inverted U-shaped" relationship with government subsidies.The relationship between corporate R&D investment and government subsidies in the bio-industry is closer to a positive linear relationship,while corporate R&D investment in the high-end equipment manufacturing industry only presents a "positive U-type" relationship with government subsidies in the current period.At the same time,the performance under different property rights characteristics is also inconsistent.The central state-owned enterprises and private enterprises have a "positive U-shaped" relationship between the current R&D investment and government subsidies,while the local state-owned enterprises and other enterprises' current R&D investment and government subsidies have an "inverted U-type" relationship.However,in the lag period,all companies' R&D investment and government subsidies will have an "inverted U-shaped" relationship.(3)Fixed-effect panel model is used to model and analyze the impact of R&D investment on firm performance under government subsidy.This paper attempts to incorporate government subsidy into the traditional theoretical model of R&D investment affecting firm performance,and reveals the impact mechanism of government subsidy and R&D investment on firm performance.Empirical results show that the increase of government subsidies will reduce the cost of R&D and promote the transformation of R&D results.Therefore,government subsidies will improve the impact of current R&D investment on corporate performance.However,after receiving government subsidies,firms may abandon projects with longer R&D cycles and turn to projects with faster profits or engage in political rent-seeking activities,which promotes the impact of current R&D investment on firm performance,but reduces the impact of lagging R&D investment on firm performance.In energy-saving and environmental protection industry,government subsidies will reduce the impact of R&D investment on corporate performance.In other eight industries,government subsidies will improve the impact of R&D investment on corporate performance,among which the positive impact of biological industry is the most significant.From the perspective of different regions,the adjustment effect of the eastern region is more significant,but the impact of the lag period is different in different regions.Because of the eastern and central regions developed economy,the rapid transformation of scientific research results into economic returns and more market opportunities,enterprises may abandon the projects with longer R&D cycle and turn to other projects with faster profits.As a result,delayed government subsidies in the eastern and central regions will significantly reduce the impact of R&D investment on enterprise performance.Because of the underdeveloped economy and the slow transformation of scientific research achievements in the western region,R&D investment often brings economic benefits in the lag period,so government subsidies in the lag period of the western region will improve the impact of R&D investment on enterprise performance.(4)To construct a theoretical framework for the impact of external factors,such as financial development and intellectual property protection,on the value creation of R&D investment of enterprises under government subsidies,to reveal the structural mutation that external environmental factors may bring to the model under the condition of continuous improvement,and to explain the incentive or crowding-out effect of government subsidies on the value creation of R&D investment,so as to understand the government subsidies and the value creation of R&D investment.The reasons for the insufficient motive force of R&D investment in enterprises provide new theoretical ideas.The empirical results show that external environmental factors have significant threshold effects on the relationship between government subsidies,R&D investment and firm performance.The structural break points of intellectual property protection and financial development are 9.5278,13.3027 and 3.7835,12.5275,respectively.The two break points divide the influence process of different threshold variables into three stages.The corresponding R&D investment coefficients of the three stages are 0.0787,-0.0032,0.036 and 0.0223,-0.0505 and 0.3807,respectively.On the one hand,with the increasing protection,the incentive effect of government subsidies on R&D investment of enterprises has been enlarged,and the crowding-out effect of government subsidies on R&D investment of enterprises has been slowed down.On the other hand,when the level of regional financial development is low,the external financing constraints of enterprises are large,and the actual R&D power of enterprises is insufficient after receiving subsidies.The main performance of government subsidies on R&D investment of enterprises is crowding out effect.With the increasing level of financial development,not only the financing channels for long-term development of enterprises have been broadened,but also the improvement of information disclosure system has enhanced the internal motivation and external supervision of subsidized enterprises for R&D.