The Research Of Information Content For The Industry Of Green Car

Government subsidies reflect the tendency of national policies,which are often identified as "good news" by the market.Many researches of scholars also proved the positive correlation between government subsidies and value of companies.In recent years,the government has been supporting the development of new energy vehicles,and relevant enterprises have received a lot of government subsidies.But in 2016,fraud of many enterprises of the industry was to be exposed.In the government's activities of rectification,many companies have been affected.Before that,whether the market first questioned these companies? This paper studies this issue.There aren't any problems after being investigated by authorities,but AK Company in the new energy automotive industry has also been affected by the fraud case.So this paper views it as research object.Through case analysis,this research studies the information content of government subsidies and the reasons for its changes.It is hoped that the conclusion of this paper will provide data support and help for policy formulation and market supervision of new energy automobile industry.Firstly,this paper uses the method of Event Study with several subsidy announcements of AK Company from 2012 to 2016 and finds that: the information content of announcements is gradually declining,even in the 2016,the information content is negative.Secondly,this paper analyzes how the market to find potential problems.By analyzing the financial indicators,the realization of the development goals,investment and R & D costs,I find that:Net profit of AK company is heavily dependent on subsidies,and ROE remains at low level,although government subsidies of the company maintain growth;receivables can't be received rapidly and subsidies are falling which make operating cash flow continue drop;the annual business development goals cannot be fully realized;investment tends to be cautious;government subsidies don't significantly promote spending on R & D,and the proportion of subsidized vehicles in the industry drops.Overall,through these indicators,the market may gradually adjust the attitude to the enterprises obtaining subsidies and reflect the gradual decline of information content.