An Empirical Study On The Impact Of Government Subsidies On Enterprise Performance From The Perspective Of Industrylife Cycle

In recent years,government subsidies have been increasing.The effects of government subsidies on traditional industries and emerging industries are different.It is necessary to study the impact of government subsidies on enterprise performance from the perspective of industrial development life cycle,so as to formulate targeted industrial policies play the role of government subsidies better.This paper takes the listed companies in the manufacturing industry as the research objects to carry on the empirical research design to study the effects of government subsidies to the enterprise innovation performance and business performance.First of all,this paper analyzes the current situation of China's government subsidies,and then divides the 29 sub sectors of China's manufacturing sector into the growth period,the mature period and the recession period.After putting forward the theoretical hypothesis,this paper designs the empirical research.Firstly this paper selects 887 companies listed in a panel data from year 2012 to 2015,then choose the number of patent output as a measure of innovation performance index and choose 12 indicators to construct a comprehensive performance evaluation system representing business performance index.Then the panel data regression model based on the choice of firm size,financial leverage and age as explaining variables is built.The empirical results reveal that the government subsidies significantly promoted the business performance and innovation in growth industrial companies;the effect for mature industry listed company is negative and not significant;government subsidies significantly inhibited the recession industry listed company's innovation performance and promote the business performance.Then policy suggestions are put forward: increase government subsidies to the growth industry,reduce unnecessary government subsidies to the mature industry,government subsidies for recession industry should be based on government subsidies moderate oriented subsidies.