Study On The Current Situation And The Effectiveness Of The Government Subsidy Of China's Listed Companies

With the deepening of the fiscal and tax system reform and the implementation of the new budget law,the efficiency of the fiscal expenditure has been paid more and more attention.In China,in order to promote economic development and encourage R&D,the government usually grants various financial subsidies to local Listed Companies which listed as "government subsidy" in the profit statement by listed companies.From the annual reports disclosed by Listed Companies in recent years,the total scale of government subsidies shows a significant growth trend,and the coverage is also increasing steadily.At the same time,the government subsidies obtained by various industries are quite different.As an important part of fiscal expenditure,the rational and efficient utilization of government subsidy plays an important role in promoting the transformation of economic development mode,the adjustment of economic structure and the improvement of independent innovation in China's deepening reform and opening up period.In order to study the effectiveness of government subsidies,this paper chooses the mining industry and information technology services industry as the research object,uses panel data from 2008-2016 as the foundation,through three aspects which are business performance,technical performance and social performance,does empirical analysis and draw the conclusions as followed: government subsidies and business performance do not exist significant positive correlation;both the mining industry and information technology services industry are good in social performance;as for technical performance,no significant relationship with the development of mining R&D,but have positive influence in incentive the information technology service industry`s R&D.Considering the industry distribution,industry benefit and capital input of government subsidies,and the empirical results of three indicators in two industries,we found that the effectiveness of government subsidies is relatively low.This paper provides some advice as followed.Firstly,adjust the direction of subsidies,appealing to the national industrial development planning.Secondly,return to the nature of financial guarantee,insure that government subsidies is neither "absence" nor "offside".Thirdly,adopt diversification measures,such as tax incentives,preferential credit and so on.Finally,strengthen supervision and management of the whole chain of government subsidies to ensure the fairness and efficiency of government subsidies.