A Research On Financial Subsidy Policy Efficiency To Increase The Listing Corporate

As an effective tool of financial policy, financial subsidies are a common means ofregulating the national economy and the society and the intervention of the assignment bythe national financial support. In the world, supporting companies by the governmentsubsidies is a general behavior in the guidance of modern economics theory. Regardless ofsize or structure, it aims to achieve Government industrial policy objectives, accelerateenterprises technological advancement, and adjust the industrial structure. However, howare the effects of financial subsidies? From the observation of relevant governmentdepartments, the effects of financial subsidies are not ideal and in a large part, the analysisof this problem is still not deep. In recent years, our governments, from the central to local,have reduced the growth rate of subsidy to some extent. It is urgently that our governmentneeds a deep understanding of financial subsidies’ effects in order to adjust policies andimplement the government’s intention. Based on this demand, this article starts from thefocus of financial subsidies--fiscal subsidies to enterprises. We will evaluate the effects ofthe value of financial subsidies by analyzing the balance sheet and income statement oflisting corporation in Shandong province. There are remarkable practical significance andtheoretical value.This article is divided into six major parts. The first part is introduction, starting fromthe research background, clearing the research purpose and significance, explaining thenecessity of enterprise government subsidies, and makes a literature review on the basis ofthe previous reading and combing theory and literature. The second part collects the theoryinvolved, including economic growth, financial subsidy and the theory of externality. Thethird part describes financial policy of our government and subsidy types from a differentpoint of view. I hypothesize on the basis of policies and types of financial subsidy in China,and the motivation of government subsides for the listing corporation and its impact onsocial economy. Part IV analyses the finance subsidy’s static evaluation of the listingcorporation in Shandong province efficiency. In this chapter, I introduce the main situationof financial subsidies in Shandong province, the analysis of present situation and economiceffect. The fifth part, according to the listing corporation’s annual report financial data,takes the listing corporation who accepts the local government financial subsidies in2008-2012as the object of study, and test the hypothesis with empirical model. The mainconclusion I draw is that the subsidy efficiency to the listing Corporation in Shandongprovince is not significant according to the empirical results. At last, the sixth part, the main assignment is to make some summary and make some appropriate recommendationson how to adjust the financial subsidy policy and to promote the subsidy efficiency usingother supporting policies.My innovation point, first of all, is the perspective of innovation. The discussion isfrom the Angle of enterprises, the micro level. At the same time, the research idea of thisarticle is based on the relevant academic ideas. Therefore, this article research results arealso established on the basis of others’ researches and innovations. Second, the maininnovation of this paper is to analyze the efficiency of fiscal subsidies in Shandongprovince by collecting all the relevant data of listed companies of Shandong province.Meanwhile, the systematic empirical analysis is conducted and the suggestions to improvethe efficiency of government financial subsidy are given.