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Empirical Research On The Relations Among Catering Behavior Of Enterprise?Government Subsidies And Financial Performance

Posted on:2018-02-23Degree:MasterType:Thesis
Country:ChinaCandidate:Y Y XieFull Text:PDF
GTID:2359330515995279Subject:Business management
Abstract/Summary:PDF Full Text Request
Under the established market economic system,the local government needs to adjust and control the local economic development,help the enterprise and participate in some activities of the enterprise through the "visible hand" under the touch of the political responsibility and the performance appraisal system.Among them,the government subsidy as the government only "tangible hand" is not only one of the important financial expenditure,but also one of the means of the resource redistribution,which has played an important role in operation and regulation of the national economy.But with the implementation of the decentralization reform,the local government has a greater control over the local finance,which may lead to giving unsuitable government subsidies to local enterprises in some own considerations of the government.Due to the asymmetry of information,listed companies may be aware of the government to subsidize the issuance of subsidies,and take the appropriate behavior to meet the government's motives,in order to obtain more government subsidies.This will lead to resource mismatch,so that resources can't be optimized configuration,thus using the resource less efficient.In recent years,the government subsidies issued by the listed company of combination is keeping increasing,and its coverage is the same.However,a subsidy which different listed companies get has a large gap.So there is practical significance to research the relationship between to cater to the behavior /government subsidy and financial performance in this context.Based on information asymmetry theory and rent-seeking theory,with Shanghai and Shenzhen A shares of Listed Companies in 10254 samples as the research object,this paper attempts to study the profitability of different types of enterprises how to take action to get more government subsidies,and further empirical research studies the relations among the catering behavior?government subsidy and financial performance.The study found that:(1)Betterperforming firms tend to take more government subsidies through rent-seeking;worseperforming firms tend to obtain government subsidies through negative earnings manipulation.(2)Government subsidies promote the current finance performance for both firms,but not the long run for worse-performing firms;(3)For better-performing firms,government subsidies through rent-seeking will weaken the impact of government subsidies on corporate financial performance;but for the worse-performing firms,we are not sure.To this end,this paper gives some views from the government and the enterprises.
Keywords/Search Tags:Government Subsidies, Financial Performance, Negative Earnings Management, Rent-seeking
PDF Full Text Request
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