Political Relevance,Government Subsidy And Financial Performance Of GEM Listed Companies

From the perspective of the whole world,government subsidies are a very common phenomenon.In recent years,many scholars have conducted a lot of research and Discussion on the factors affecting government subsidies and government subsidies to the equity and efficiency issues,but so far,the efficiency of government subsidies as well as the motivation of government subsidies are not a unified conclusion.With the state backed company began to receive national attention in recent years,the research on corporate political association and enterprise value also grow with each passing day,however,to how the political connections affect the performance of enterprises is also no uniform conclusions.The growth enterprise market in China because of its unique characteristics and different from other listed companies,the growth enterprise market is not listed on the main board of entrepreneurial enterprises,small and medium-sized enterprises and high-tech enterprise,has the high growth,but the newer smaller,performance is not outstanding,but have larger space to grow up.Therefore,the chinext is a low-threshold,risky and tightly regulated stock market and a cradle for the incubation of technology and growth enterprises.Government subsidies for activities were led by the government,which is not affected by the political association of Listed Companies in the concrete implementation process in? Consider this factor of political connections,whether for government grants the impact on the financial performance of the uncertainty to find a reasonable explanation?This article tried to explain by gem listed company political ties to government subsidies of deep motivation,in order to illustrate the government subsidies in the actual operation process whether lost its should keep fair.And to further explore the relationship between government subsidies and corporate financial performance and the relationship between political connections and performance,in order to find the deep reason of affect the enterprise's financial performance.Through the sample data of listed companies on the gem are descriptive statistics,t test the correlation analysis,regression analysis,the paper finally reached to the conclusions as follows:For gem listed companies,enterprises,the higher the degree of political ties the government subsidies,the more business relationship with political connections and government subsidies were positively correlated;Government subsidies and was significantly positively related to relationship between corporate financial performance,the more shows that enterprises obtain the government subsidies,the higher its financial performance,government subsidies to the enterprise financial performance has significant and positive influence,but when the enterprise existing political ties,government subsidies for there is no effect to the promotion enterprise performance.Finally,this paper puts forward some practical suggestions on how to improve the efficiency of government subsidies to enterprises and how to improve the financial performance of enterprises.