The Influence Of Government Subsidies On Corporate Social Performance

As the main part of China's real economy,manufacturing industry plays an essential role in China's economic development.In order to achieve technological upgrading and promote the high quality development of China's real economy,the government subsidizes the target industry every year.Both the scope of subsidies and the amount of financial aid are increasing year by year.Therefore,as one of the means of government supporting industry,the specific role subsidies plays in the enterprises is worth studying.How the government subsidies affect the performance of the enterprises and what is the difference between the government subsidy effects on different enterprises,which are all the problems we need to explore.This paper first summarizes the theoretical and empirical studies of government subsidies at home and abroad,and makes a comprehensive statistical analysis on the scale of subsidies,the level of subsidies and the distribution of subsidies in Chinese manufacturing listed enterprises.In the theoretical analysis,this paper discusses the possible influence paths of government subsidy on R&D investment,enterprise tax contribution and enterprise absorption of employment.Combined with theory,this paper empirically examines the relationship between government subsidies and corporate social performance based on panel data of 1010 listed manufacturing enterprises between 2011 and 2016.The study found that government subsidies have a significant role in promoting corporate social performance.Specifically,government subsidies have a significant role in promoting enterprise R&D investment and the number of enterprises to absorb employment.Based on that,this paper further makes a comparative analysis in terms of ownership type of the enterprise,the characteristics of the industry and the regional distribution of the enterprises.The results show that the incentive effect of government subsidy on enterprise innovation performance is most obvious in the technology intensive industry and capital intensive industry,but it is ineffective in labor intensive industries,and the government subsidy of the middle regional enterprises is more effective for the improvement of enterprise R&D.The promotion of government subsidies on employment of state-owned enterprises is greater than that of private enterprises.The promotion of government subsidies to the employment of eastern enterprises is greater than that in the middle regions,but it is not significant in western China.Government subsidies have an incentive effect on the innovative investment,employment and employee welfare of profitable enterprises,but they have not improved the social performance of the loss-making enterprises.