Research On The Effect Of Subsidy Policy Adjustment On Enterprise Performance

National policy,as an important means and measure for the government to achieve certain economic and social goals,plays a huge role in making up for market defects and regulating market operations.Enterprise is also the basic cell of the economy and an important player in the market.Therefore,the government often formulates a series of policies,such as subsidy,taxation,legislation,propaganda,incentives and other measures to provide support for enterprise.In the series of guiding and regulating policies,government subsidy is the most used control tools.Since the 1950 s,China has implemented subsidy policies.Over the past 60 years,various industries have stimulated industrial development and transformation through subsidy policies.However,if the subsidy policy isn't properly adjusted,it will also cause certain interference to the market and business operations.For example,from 2008 to 2015,the government implemented a series of subsidy policies for the household appliance industry,driven the demand of the household appliance market,made household appliance enterprises grow rapidly in subsidies,successfully achieved industrial transformation and upgrading,and significantly improved corporate competitiveness and profitability.However,in the latter stage of subsidies,many household appliance enterprises have jointed the Household Appliances Association to write three ministries,hoped that policies can be quitted on time,and no longer subsidy.This phenomenon has triggered a discussion of the impact of government subsidy policy adjustments on enterprise performance.Taking the household appliance industry as an example,this paper adopts the event-study methodology and the regression analysis method to analyze the enterprises that participating in the four household appliance policies of "Rural household appliance subsidy" "Household appliance replacement scheme" "Energy-saving appliance subsidy policy" and "Energy efficiency leader system" in 2008-2015.This paper analyzes the financial data of various enterprises in 2007-2017 for the research sample,and deeply analyzes how the five adjustments of the household appliance subsidy policy affect the performance of manufacturers in innovation,profit,operation and development,also analyzes the relationship between the subsidy policy and the size of the enterprise.The results show that:(1)the combination of subsidy policies has a more significant impact on enterprise performance than the single policy.(2)the cancellation of policies has a significant impact on enterprise performance.(3)indirect incentive subsidies have a more significant impact on enterprise performance than direct financial subsidies.(4)policy implementation has a significant impact on the abnormal performance of small and medium-sized firms,and the cancellation of policy has a significant impact on the abnormal performance of large firms.In summary,this study aims to provide theoretical supplements to Chinese household appliance industry through theoretical and empirical research on the impact of government subsidy policy adjustments on enterprise performance.At the same time,this study also hopes to have certain practical significance for policy formulation and enterprise development in other industries,in particular,the new energy vehicle industry.In addition,I hope that through the research in this paper,it will also provide some help for enterprises to effectively respond to policy adjustments.