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Subsidy,Industrial Policy And Subsidy Efficiency

Posted on:2018-07-13Degree:MasterType:Thesis
Country:ChinaCandidate:J Y ChangFull Text:PDF
GTID:2439330515455812Subject:Public Finance
Abstract/Summary:PDF Full Text Request
Fiscal subsidy is an important part of government expenditure.In many countries especially in countries of economic transition,fiscal subsidy is one of important policy tools for maintaining economic stability,optimizing the allocation of resources and implementing industrial policy.In recent years,Chinese listed firms have received increasing fiscal subsidies.According to statistics,in 2015,nearly 97%of Chinese listed firms(more than 2700 firms)have received fiscal subsidies,which are amounted to more than 145 billion Yuan.In fact,fiscal subsidies have become an important topic worthy of further exploration.In this paper,we use 1254 Chinese listed companies as a sample to process to obtain copies of 8778 observations,from the period of 2009 to 2015.We use theoretical analysis,descriptive statistics and multivariate regression analysis method.From the angle of micro enterprise,this paper empirically tests how the government allocates the fiscal resources between policy-supporting and non-policy-supporting industry,what factors influence the strategy of allocation and how about the subsidy efficiency.The study found:(1)compare to the general companies,companies belonging to the strategic emerging industries can get more fiscal subsidies.(2)for strategic emerging industries,the listed companies which has a higher growth rate or higher investment in R&D will receive more fiscal subsidies form the government.Farther,private enterprises with higher growth rate and investment in R&D will get more fiscal subsidies.In contrast,the quantity of fiscal subsidies state-owned enterprises received is independent to its growth.(3)Fiscal subsidies offered to strategic emerging enterprises will increase firm's asset profit ratio and Tobin's Q in the next year,on the contrary,the relative number of employees and the total amount of tax have no obvious change.This means that the fiscal subsidies for strategic emerging industries has a positive impact on firm's economic performance,but don't work on its social performance.Farther,it is found that the more subsidies the state-owned strategic emerging enterprises received,the higher economic performance the companies will achieve,but the fiscal subsidies are not helpful for the private strategic emerging enterprises.Furthermore,the paper divides the sample into two sub-groups,which are low market degree group and high market degree group.The study found that,only in the high-market-degree group,the financial subsidy will promote the state-owned strategic emerging enterprise's economic efficiency.It may be that the listed companies in the low market area or high market area put lots of time and money to rent-seeking,which offsets the positive impact of the fiscal subsidies on firm's performance.The significance of this paper is to study the fiscal subsidies allocation and subsidy efficiency of listing Corporation from the perspective of industrial policy.Which make this paper difference from and complement the existing researches.At the same time,the results of this paper have certain practical significance on how to improve the fiscal subsidy system and strengthen the external supervision on listing Corporation.The deficiency of this paper didn't analyze the root cause and mechanism of how the nature of the enterprise influence the subsidy efficiency.
Keywords/Search Tags:Subsidy, Industrial Policy, Strategic-Emerging Industry, Subsidy Efficiency
PDF Full Text Request
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