Impact Of Government Grants On Corporate Sustainable Development

The development and utilization of new energy is the new round of world economiccompetition after the global financial crisis, new energy industry will become the focus ofindustrial innovation in China. Our country through government subsidies to guide therational allocation of resources and to promote the optimization and upgrading in theindustrial structure has played a positive role. However, the new energy industry in Chinaencountered hitherto unknown difficulties, the industry downturn is an undisputed fact,though government subsidies inside to alleviate the plight of enterprise development inshort-term, eventually let the enterprise realize the freshmen, to become the industrybenchmark is very rare. This paper will research the government subsidies for new energyindustry support has not played a positive role, whether can let the enterprise sustainabledevelopment.Based on theoretical analysis, combined with previous research results, through theintroduction of stakeholder theory, the principal-agent theory and information asymmetrytheory, analysis on advantages and disadvantages of government subsidies from two sides；Expounded government grants accounting standards changes, government subsidiesmotivation and forms. Construct of index of new energy enterprise sustainable developmentcapability, and analysis comprehensive score of new energy enterprise sustainabledevelopment capability utilization factor. In the part of empirical analysis, from2010--2012three years in China, Shanghai and Shenzhen two stock A52new energy listing Corporationas a sample, for descriptive statistics and regression analysis on the government subsidies andthe comprehensive score of sustainable development of enterprises, draw the followingconclusions:1. government subsidies and sustainable development of enterprises havenegative correlate in the current period;2.the first and the second period governmentsubsidies and the second and the third period sustainable development of enterprises is notsignificant, no significant relation between government subsidies of the first period andsustainable development ability of the first period;3.state-owned enterprises get moregovernment aid and help the sustainable development of enterprises. According to the research results, the paper proposes the following policyrecommendations:1.to comply with the laws of the market, change the government ideas;2.improve the new energy industrial competitive ability, reduce the dependence ongovernment subsidies3.Strengthen government subsidies audit in new energy industry;4.improve the new energy industry financial support.The main innovation of this paper lies in:1. enterprise sustainable development is adynamic process of continuous, this paper not only studies the government subsidiesinfluence on the sustainable development of the enterprise, also study the governmentsubsidies influence on sustainable development of enterprises in later indicators;2. theselection of indicators build capacity for sustainable development of new energy industry,using the method of factor analysis, the ability of sustainable development companies score,then with the level of government subsidies and the sustainable development of scores ofregression analysis, to study the relationship between government grants and the sustainabledevelopment of enterprises.