The Impact Of Government Subsidies On Behavior Of New Energy Automobile Enterprises

In the past 20 years,despite the rapid economic development and the advancement of science and technology,the worries about the energy crisis are increasing day by day.All countries in the world have shifted their focus to energy competition and development.As the third largest country in the world,China has a large resources,but China has the highest population in the world and after the reform and opening up,it has consumed a lot of natural resources for the rapid development of the economy.Therefore,in recent years,China's economic development has begun to follow the basic principle of ?open source and thrifty? – developing new energy sources and reducing the demand for traditional energy sources.Nowadays,the new energy industry has brought new business opportunities for economic development and has become one of the key industries for China's economic development in the coming decades.In order to support the new energy industry to develop faster and better,the state has implemented a government subsidy policy since 2008,using financial allocations,fiscal interest subsidies,tax rebates,and non-monetary assets free of charge to support the research and development of new energy industries.However,will large-scale government subsidies affect the investment behavior of enterprises,including investment direction,scale,timing and performance? Is there a series of excessive investment by companies to apply for government subsidies? In addition,the government subsidy as the ?non-operating income? of the enterprise is included in the financial statements,which will inevitably affect the financial performance of the enterprise.In the long run,government subsidies will outweigh the disadvantages of the market value and future development of enterprises,mainly because the state's government subsidy policy is very strict,and the subsidies are mostly sunrise industries with full development potential.This paper takes the background and problems mentioned above as the starting point of research,and studies the performance of corporate investment behavior after accepting government subsidies,and what effect government subsidies have on the investment performance of enterprises.This paper mainly uses the case study method to select BYD Company,the company with the widest scope and the largest amount of government subsidies in recent years,as the source of the case study.This paper first analyzes the basic profile of BYD,including its development process and business status,as well as the basic overview of government subsidies over the years.Secondly,it analyzes the investment situation of BYD Company since it began accepting large-scale government subsidies for new energy vehicles in 2011.The investment scale,investment direction and investment timing are compared to analyze the impact of government subsidies on their specific investment behaviors.At the same time,the investment efficiency,Tobin Q value and scale benefit index of BYD Company were calculated and analyzed,and their investment performance was analyzed and elaborated.According to the analysis,although government subsidies can alleviate the financial pressure faced by enterprises in a short period of time,ensure that the company's cash flow is stable,and allow enterprises to have sufficient funds for technology research and development and market development,which will help enterprises expand investment scale and expand investment direction,grasp the timing of investment,but it is difficult for enterprises to avoid excessive investment behavior after receiving government subsidies,and it is difficult to significantly increase the market value of enterprises.Therefore,for these new energy companies that are developing,they need to actively research and develop to obtain government subsidy projects.After accepting government subsidies,they should formulate practical investment plans and prepare for the cancellation of government subsidies that may occur at any time.This paper consists of five parts: The first part is the introduction,which mainly introduces the research background and significance of this paper,the research content of scholars at home and abroad,and the research ideas and research methods of the full text;the second part is government subsidy and The theoretical overview of corporate investment behavior mainly defines key concepts,and states the specific contents of government subsidies and corporate investment behaviors of new energy vehicles,and provides relevant theoretical basis for later writing;the third part is a case study of BYD Company.It mainly introduces the basic situation of BYD Company and the reasons,methods and scale of BYD Company's obtaining government subsidies in recent years.The fourth part is the impact of government subsidies on BYD's investment behavior.It mainly analyzes the impact of BYD's investment scale,investment direction,investment timing and investment performance after the implementation of the government subsidy policy for new energy vehicles in the country;The fifth part is the conclusion and enlightenment of the case.It mainly combines the theory with the actual case to analyze the impact of government subsidies on the investment behavior of new energy auto companies.Concrete conclusions and total Inspiration,expect to be able to provide reference for better support enterprise development through government subsidies.From a theoretical point of view,the previous research content mostly analyzes the impact of government subsidies on corporate financial performance,and this paper supplements the research on the impact of government subsidies on investment behavior in the new energy auto industry.In the practical sense,under the background of the current government subsidy policy for supporting the development of high-tech industries,this paper provides a reference for how to obtain government subsidies and use government subsidies to make efficient investments.