Financial Subsidies,Political Connections And Listed High-tech Enterprises R&D Spending

In 2018,the United States try to hinder the development of China,s high-tech enterprises such as ZTE and HUAWEI,which has made all sectors in China deeply realize the importance of developing core technologies.In order to reduce the short-term performance pressure of listed companies and reduce the risk aversion degree of research and development,so as to promote the development of high and new technology in China,the government should give full play to the stimulating effect of financial subsidies on high and new technology enterprises while introducing financial subsidies to support them to increase their investment in research and development,and reduce the crowding out effect as much as possible.Executives for enterprise development direction,resource allocation is often decisive,political relation as a social capital is an important characteristic of business executives,will affect the enterprise R&D target and power source,so the study of politics association how to regulate"the impact of the financial subsidies to the enterprise R&D" appears has the necessity.This paper proposes two hypotheses:fiscal subsidies have stimulative effect on R&D input of listed high-tech enterprises,and political correlation will weaken the stimulative effect of fiscal subsidies on R&D input of listed high-tech enterprises.A sample of 1,406 listed high-tech enterprises from 2012 to 2016 was used for regression,followed by grouping regression according to the three dimensions of enterprise nature,ownership concentration and industry.Then the robustness test and endogeneity test were performed on the model.Conclusion 1:government subsidies can significantly stimulate the increase of R&D investment in listed high and new technologies.Conclusion 2:political association will weaken the incentive effect of government subsidies on R&D investment of listed high-tech enterprises.Make policy recommendations based on the conclusions.Innovation in this paper,the main research:research more focused on the existing political associ.ation to obtain the ability of financial subsidies,but this article focuses on the study whether fiscal subsidy to stimulate enterprises to increase spending on research and development at the same time,the poli.tical association will weaken or strengthen fiscal subsidies listed on the impact of high and new technology enterprise R&D input,mechanism includes political association allows fewer subsidies into the research and development under the condition of invariable,the number of fiscal subsidy efficiency decrease,driven by subsidies reduce enterprise own capital investment ability.