Research On The Fiscal And Tax Subsidy On BYD's Financial Performance

With the financial crisis in 2008 to ease the world economy into a relatively stable period.Countries to the future development direction of the automotive industry as a new energy vehicles.In recent years,as the Chinese government has launched a series of new energy industry subsidies and support policies,the new energy automotive industry presents a boom.However,the new energy vehicles after 7 years of market cultivation will gradually usher in a rapid growth period,the national complement and fill the two lines to reduce the 2017 will be the enterprise shift stage.Government tax subsidies on the effectiveness of enterprises can play the desired effect? How should companies gradually get rid of dependence on subsidy policies? How companies should seize the last few years of subsidies to achieve self-improvement have become frequently mentioned issues.Therefore,the purpose of this paper is to help the government and enterprises to understand the implementation of fiscal and taxation subsidies in recent years,the effect of the other side for the long-term business plan to meet the challenges of future subsidies to land reclamation.This paper combines case studies with empirical research to select the data of BYD's financial reports in recent years and explore the impact of fiscal and taxation subsidies on the financial performance of BYD.This paper first introduces the background and significance of the research and the literature review at home and abroad.And then the financial tax subsidies,financial performance and financial subsidies and financial performance of the relationship were described.The third part analyzes the status of taxation subsidies.Including the size,manner and reasons of the subsidy.In the fourth part,we use the method of gradual elimination to compare the data before and after the comparison of the subsidy index to study the impact of the fiscal and taxation subsidies on the current financial performance of BYD.However,the fiscal and taxation subsidies have a lag effect,so the fifth part of the fourth part of the study on the basis of fiscal and tax subsidies to lag a financial performance of the empirical test.This chapter further examines the impact of fiscal and taxation subsidies on BYD's financial performance by establishing a regression model.This part of the financial performance indicators in the selection process,in order to ensure that the indicators are representative,so the use of factor analysis to determine the indicators,and then financial subsidies and BYD financial performance regression analysis.Finally,according to the analysis of the previous chapters,it is concluded that the government subsidy policy does not have the desired effect in enhancing the financial performance of BYD.Income tax benefits can effectively improve BYD financial performance,and income subsidies are not fully utilized,nor can promote the long-term development of enterprises.At the same time,BYDlacks a reasonable allocation of government tax subsidies.BYD mainly use tax subsidies to improve their profitability and solvency,while the distribution of operational capacity is very small.Finally,combined with the above conclusions,from the enterprise,government and investors from the perspective of relevant recommendations.