Research On The Impact Of Government Subsidy On The Performance Of GEM Listed Companies

In recent years,in order to promote the structural adjustment of China's economy,the state pays more attention to the development of strategic emerging industries and invests a large amount of subsidized funds,which are mostly used for R&D activities of enterprises.At the Fifth Plenary Session of the Eighteenth Central Committee,General Secretary Xi pointed out that innovation and development occupy the first place.Subsequently,in the National Economic and Social Development Plan 2018,it was further proposed to strengthen the support and leading role of technological innovation in the real economy.Therefore,understanding the mechanism of government subsidy on enterprise performance and clarifying the relationship between government subsidy,R&D investment and enterprise performance are of vital importance to better play the role of state subsidy and optimize the allocation of financial resources.Based on the literature and theory of government subsidy,R&D investment and enterprise performance,this paper puts forward the research hypothesis about the internal mechanism of government subsidy and R&D investment affecting enterprise performance.This paper chooses 408 companies listed on GEM before 2014 as the object,uses sample data from 2013 to 2017 to construct panel fixed effect model for regression analysis,and explores the impact of government subsidies and R&D investment on enterprise performance.The empirical results show that from the perspective of effect,government subsidies can improve the performance level of enterprises,and R&D investment can also significantly improve the performance of enterprises,while government subsidies have a significant incentive effect on R&D investment;from the perspective of mechanism,in the process of government subsidies acting on enterprise performance,R&D investment plays a significant intermediary role.Finally,this paper puts forward policy recommendations from the perspective of government and enterprises,and summarizes the shortcomings and prospects.