Research On The Impacts Of Government Subsidies To Firm Investment Behavior And Financial Performance

With the rapid development of economy and energy crisis,the exploration of strategic emerging industries has become the focus of the new energy war.Today,China is also concerned about the new energy industry.The government expects to inject the fresh blood into the traditional industry,thus to promote the sustainable development of the economy.Due to the advantage of energy-saving and emission reduction,the government has given a lot of financial subsidies to support it.However,in order to obtain government subsidies,enterprises' investment behavior are affected by it,such as investment direction,investment scale and so on.In addition,government subsidies are included in the enterprise's statement of profit or loss in the form of non-operating income,which will have a direct impact on the financial performance of the enterprise.In the research of the above problems,I also found that government subsidies will affect the investment behavior of enterprises,such as investment direction,investment scale and investment opportunities.So this paper analyzes the mechanism and effect of government subsidies on corporate investment behavior and its financial performance.On the method of focusing on case study,I selected SA Company as the example.Firstly,the paper analyzed the external environment of the new energy industry.Secondly,I analyzed the influence route and mechanism of government subsidies on investment behavior of SA company,and calculated the investment efficiency of SA company.Although the government subsidies alleviate the financial pressure of the enterprise to a certain extent,its sufficient funds promote enterprises to carry out R&D and market development.But after receiving government subsidies,enterprises do not maximize the efficiency of the government subsidies.So although government subsidies improve the financial performance of enterprises temporarily,did not improve the core competitiveness of enterprises.Finally,I analyzed the effect mechanism between government subsidies and financial performance.The financial performancefocuses on the analysis of accounting performances.The new energy industry is currently one of the strategic emerging industries,which won the government a lot of financial subsidies.After receiving large-scale government subsidies,on the whole,the government subsidies have a positive impact on SA company,reducing the probability of the shortage of funds.So that SA company has confidence in investing intangible assets and technology research.However,at present,the actual profit of most domestic enterprises is low.Therefore,it is necessary to analyze the relationship between government subsidies and corporate financial performance.At the same time,how to make the government subsidies maximize the efficiency and enhance the overall competitiveness of enterprises is also the topic of the research.The conclusion of this paper is of great significance on how to obtain government subsidy and how to improve the efficiency of fund utilization and enhance the core competitiveness of enterprises.