Research On The Correlation Between Government Subsidies And Corporate Performance In Companies Of Software And IT Services

China makes a great emphasis on the development of software and IT services, and in recent years, this field of industry has obtained significant subsidies from the government. We made researches on the listed company of software and IT services industry in SME and GEM, and we categorized the government subsidies into those for scientific research and those for others. We researched the relationships between subsidies for scientific research, subsidies for others with the sample companies'business performance and development capability.The main conclusions of this paper indicate:(1) the government subsidies for scientific research increased the sample companies'current business performance by increasing non-recurring profit and loss. Excluding the influence of the government subsidies to the non-recurring gains and losses, we find government subsidies for scientific research can also enhance the sample companies'following business performance. However, the subsidies for others have no effect on the sample companies'current and the following business performance. (2) The subsidies for scientific research have significant positive influence on the sample companies' current and following R&D. Subsidies for scientific research have more significant influence on the sample companies'following R&D. But subsidies for others have no influence on them.Based on the empirical results, this paper puts forward five policy suggestions:(1) The governments still need to enhance the support for self-directed innovation, especially for weak links and key technology of the industry. (2) Pay attention to the diversity of subsidies, based on the demand of the market, the allocation of market resources should be optimized (3) Protect intellectual property, and make the software market more regulated and the market competition more healthy. (4) Stricken the qualification of the enterprises that apply for government subsidies and carry out serious supervision and inspection. (5) Regulate government subsidies and R&D spending information disclosure mechanism. (6) Establish a shared network platform for government subsidies...