Research On The Impact Of Government Subsidy On Sustainable Growth Of Environmental Protection Enterprises

Government subsidies with the policy orientation of promoting the development of environmental protection industry have both positive and negative impacts on the sustainable growth of environmental protection enterprises.Strategic allocation of government subsidies which according to the response of enterprises can make government subsidies characterized by scarcity achieve "driving" efficiency.The core question of this paper is to discuss whether "under the background of market reform,whether traditional supply-side adopted by the government can encourage environmental protection enterprises to achieve innovation and sustainable growth or the effectiveness of the subsidy policy has been reduced to just stimulating productivity growth in assimilation products,strengthening the dependence of enterprises which suppresses independent innovation and sustainable growth of environmental protection enterprises.Centering on this core problem,the paper follows the logical path of "problem proposal--theoretical analysis--theoretical judgment and hypothesis formation--preliminary statistical analysis between explanatory variables and explained variables--empirical test of theoretical hypothesis--countermeasures based on the conclusion".Based on the spillover effect,signal transmission mechanism and moral hazard of technological innovation,the paper analyzes the positive and negative effects of government subsidies on the sustainable growth of environmental protection enterprises,and analyzes the theoretical meaning of inverted "U" structure relation model.This research takes "achievement of sustainable growth" of environmental protection enterprise as the explained variable,government subsidies as explanatory variables and uses Van Horn sustainable growth rate and revenue growth rate to build the indicator of "achievement of sustainable growth".This paper selects 97 environmental protection companies panel data from 2008 to 2017,based on the foregoing theoretical analysis sets regulate mediation model,combined with differential GMM model,system GMM model to estimate and test the impact of government subsidies on sustainable growth of environmental protection enterprises,the mediating effect of R&D investment in government subsidy on sustainable growth of enterprises,and the regulatory effect of environmental regulation in the impact of government subsidies on enterprise R&D investment.The theoretical analysis shows that the government subsidy has both positive and negative effects on the sustainable growth of environmental protection enterprises.Combined with these two influences,this study proposes the hypothesis that government subsidies have an impact on the sustainable growth of environmental protection enterprises.The empirical results indicate that the quadratic function model test results support the government subsidy has an inverted "U"structure impact on the sustainable growth of environmental protection enterprises,enterprise R&D input in government subsidies plays a positive effect on environmental protection enterprise sustainable growth intermediary role,at the same time,environmental regulation negatively regulates the relationship between government subsidy and R&D investment.To sum up,this study suggests that the government should try its best to find the optimal value of subsidy incentive effect when formulating R&D subsidy policy,so as to avoid excessive subsidy killing the independent innovation of environmental protection enterprises.;improving the market-oriented exit mechanism for the survival of the fittest,cultivating differentiated demand and supply of environmentally friendly products,and improving the performance evaluation mechanism for green technology innovation by enterprises are all options.In addition,the government should set appropriate environmental regulation standards to give full play to the innovation compensation effect of environmental regulation on enterprises.