Property Rights, Political Connection, The Motivation And Effect Of Government Subsidies

China is still in the transformation process of planned economy to the market economy system at present. All the time, Chinese government plays a very important role in economic life. Government not only holds the distribution of economic resources of the capital, land and mineral as managers, but also holds much administrative examination and approval power of preferential policy and corporate listing as social administrators. The government subsidies as an important intervention tool of local government to economy already has produced important influence to capital markets and listed company. But there are only relatively limited empirical studies for government subsidies at home. So this paper, from a relatively new angle researches the government subsidies. The author focuses on the effect of the property rights and relationship between government and enterprises to government subsidies, the implementation effect of government subsidies. This paper studies the motivation of government subsidies mainly from the enterprise property rights, the government background of managers and industries. For the implementation effect of government subsidies, this paper will study from two aspects——the economic result and the social effect.The conclusion of this paper:(1) study found that the property rights and the relationship between government and enterprises don't influence significantly the obtainment of listed companies for government subsidies in China, overall. (2) ST enterprise will get more subsidies, but the chance to be subsidized is not higher than other enterprise. ST in the state-owned enterprises gets more subsidies relative to the private enterprise, but the amount of subsidy is not bigger compare to ST Private enterprises. But, private ST enterprise which has the relationship between governments gets easily more subsidies. (3) Animal husbandry and fishery, oil chemical plastic, pharmaceutical and biological products, mechanical equipment instrument, information technology industry and social services will get more subsidy; Food beverage industry, paper printing, metal nonmetal, pharmaceutical and biological products, other manufacturing and information technology industry get subsidy more easily. (4) The government subsidies can improve the economic effectiveness and tax of enterprise next year. But its employment decline significantly. The innovation of this paper:this paper uses the data from 2007 to 2009, and use the new variable for subsidies benefit. Besides, this paper studies the motivation form a new angle——property rights and makes a thorough analysis to the relationship of subsidy between industry.This research revelation:the government for some industry subsidies need to be proven, the transparency of government subsidy system needs to be enhanced; Make the government subsidies accounting more regular.