An Empirical Study On The Efficiency Of Government Subsidies And Small And Medium Enterprises

The investment efficiency of enterprises is closely related to its survival and development, and is directly related to the promotion of enterprise value. In recent years, with the rapid development of national macro economy and the government’s support, China’s small and medium enterprises have been developing rapidly, regardless of the quantity or quality are improved, but because of the constraints of small and medium enterprises in the capital, there is still widespread investment in the phenomenon of low efficiency. Scholars have carried out a lot of research on this issue, but few scholars combine the growth of small and medium enterprises to explore the relationship between government subsidies and enterprise investment efficiency. With the development of small and medium enterprises increasing, the function of economic development in our country is becoming more and more important. It is very important to study the relationship between government subsidies and investment efficiency. So, small and medium enterprises to obtain government subsidies to help companies optimize the investment efficiency? The growth of small and medium enterprises is different, the role of government subsidies to the investment efficiency is also there is a difference?In view of the above problems, this article from the Shenzhen SME board selected a sample of 224 enterprises in 2010-2013 four years of financial data as the research object, through the empirical analysis of relationship between discusses the small and medium listed enterprises access to government subsidies and investment efficiency; on this basis, further combined with the level of growth of Listed SMEs, respectively, to explore effects of government subsidies on the efficiency of investment in small and medium-sized listed companies produced. The research results show that:(1) the government subsidy can ease the current situation of the investment shortage of small and medium-sized listed companies in china. (2) the growth of small and medium listed companies, government subsidies will increase their internal free cash flow, more easily exacerbate their over investment. (3) the growth of small and medium-sized listed companies, government subsidies will significantly improve their internal funds flow, slow down their investment shortage.This paper develops a new research perspective and research ideas for exploring the relationship between government subsidies and investment efficiency of small and medium-sized enterprises, and provides theoretical basis for improving the efficiency of small and medium enterprises in China and further improve the government’s subsidy mechanism.