Government Subsidies,Investment Strategy And Financial Performance

Today,with the increasingly prominent environmental contradictions in our country,the whole society's appeal for environmental protection is becoming more and more intense.Under the new normal economic situation,China's automobile industry is facing opportunities and challenges of transformation and development.As a key strategy in the revitalization of China's automobile industry,new energy vehicles have been highly valued by the country.Industrial transformation cannot be separated from the government's macro-level guidance and resource allocation,government subsidies is the state's macro-control of the market economy,one of the important financial means to guide industrial development.Government subsidies,including fiscal and taxation policies and monetary incentives,have played an important role in guiding and promoting the development of the new energy automobile industry.The data show that the annual sales of new energy vehicles in China have increased from 17,000 to 777,000 from 2011 to 2017,and the subsidy policy has effectively increased the sales of new energy vehicles in China in the short term.China has become the world's largest market for new energy vehicles,and this achievement is inseparable from the support of government subsidies.However,from the perspective of the whole industry,as a lot of government subsidies granted to the new energy automotive industry have not achieved very good results.Some enterprises rely too much on government subsidies lacking endogenous growth momentum."Cheating" incidents occur frequently.It not only caused the loss of national financial resources,but also damaged the corporate image and consumer confidence.So in recent years,the government subsidies for the new energy automobile industry are gradually raising the threshold of subsidies,reducing the proportion of subsidies,and forcing enterprises to get rid of dependence,forming an internal driving force for development.How can we make good use of government subsidies in the rapidly developing new strategic industry of new energy vehicles and do not rely on government subsidies too much,this is the reason why the government subsidy affects the investment strategy and financial performance of the enterprise,and it is also the starting point of this study.In content,after explaining the research background and literature review,this paper analyzes the case background,combs out the scale trend,form changes and existing problems of the new energy automobile industry to obtain government subsidies,and then takes BYD as an example,divides it into two aspects:investment strategy and financial performance.This paper analyzes the influence of government subsidy on the enterprise,and draws a conclusion that government subsidy affects the investment strategy and promotes the current performance of the enterprise.At the same time,investment strategy also has a moderating effect on the long-term performance of the enterprise.This paper summarizes BYD's experience in the process of utilizing government subsidy,and provides guidance for enterprises to fully consider the combination of enterprise development with national and regional economic development and rational use of government subsidy when formulating strategies,which has certain reference significance for enterprises'practice.At the same time,this paper studies the economic consequences of government subsidy,which has a positive significance for evaluating the rationality of government subsidy policy,and provides a reference for the government to optimize the relevant government subsidy system and improve the efficiency of subsidy.In addition,this paper helps the stakeholders of listed companies to understand the government subsidy and its impact on listed companies,such as investors can effectively judge the actual operating results of the company,so as to protect their rights and interests.The innovation of this paper is that most of the previous studies on the impact of government subsidies on enterprises have focused on enterprise performance,investment efficiency,technological innovation and other aspects,and empirical research is more,case analysis is very rare.At the same time,there are few papers on how government subsidy affects the investment strategy and financial performance of enterprises and the relationship between them.This paper takes BYD as an example to explore the impact of the government subsidy on investment strategy and financial performance and the relationship between them,so as to enrich the relevant literature of government subsidies.