The Empirical Research On Public Financial Subsidy’s Effects On Corporate Performance In Guangzhou City

Enterprises have become the most dynamic part of the development of China’s national economy and they are characterized by their operating flexibility, high efficiency and strong innovation. It takes less time for the enterprises to convert science and technology into practical productivity. They can participate in the market competition actively and effectively and motivate the competitive pressure of the whole market. Currently, global economic crisis has had a great negative impact on China’s enterprises, making them in a difficult situation. Therefore, it is necessary to analyze the enterprises, too. The issue of performance concerning the enterprises’ development has become the key point of research. Since2008, the global economy has been declining and macroeconomic stimulus has become very essential. National macro policy contains monetary policy and fiscal policy. Monetary policy can increase the effects of monetary multiplier and cause economic stimulus growth, but excessive issuance can lead to inflation. Due to the influence of world currency, the inflation has been very serious in recent years. If the monetary policy is relied on too much, the inflation will be more serious. As a result, these years the national economic stimulus means have been inclined to fiscal policy.The essay is to innovatively assess the effectiveness of national fiscal policy from the perspective of the public financial subsidy and set up financial subsidy model and enterprise proficiency analysis model. In the model it has set the variables of the nature of enterprise, employment index scalar and corporate performance variables. It has collected the real data of listed companies in Guangzhou form the database of Shenzhen Stock Exchange and has done the empirical research by means of regression analysis. The results show that:there is a positive correlation between the nature of enterprise and public financial subsidy, at the same time there is a positive correlation between public financial variables and corporate performance. This proves that public financial subsidy has some stimulative and incentive effects on corporate performance.