Research On The Relationship Between Government Subsidy,R&D Investment And Enterprise Performance

Since the financial crisis in 2008,the world economic growth has slowed down,and a new round of industrial upgrading has once again set off in the world.As an important driving force for economic development,science and technology innovation has also been frequently used in various policy planning by various countries.Emerging industries which have the high-tech technology determine the country's future,and greatly drive economic growth while adapting to the sustainability and environmentally friendly requirements of modern industrial development.So emerging industry is an important strategic breakthrough to promote economic development during economic restructuring.To this end,the State Council issued the “Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries” in 2010,which clarified the seven strategic emerging industry,energy conservation and environmental protection,new generation information technology,biology,high-end equipment manufacturing,new energy,new materials and new energy vehicles.In addition to the national top-level design,local governments have also introduced support policies to support the development of strategic emerging industries.As an important means to help achieve social and economic goals,government subsidies have also been frequently used in industrial policies to promote the development of strategic emerging industries.However,there are still mixed discussions on the actual effects of government subsidies.This paper selects 136 listed companies in the strategic emerging industries in the central region(the six central provinces of Hubei,Hunan,Henan,Jiangxi,Anhui,and Shanxi)which have the similar economic development levels in China.And taking the market failure caused by public goods,externalities and market information asymmetry,the signal transfer role of government subsidies,technological innovation and soft budget constraints,etc.into account.By constructing an intermediary model between government subsidies,R&D investment and corporate performance,the paper discusses the role of government subsidies in corporate performance,and innovatively adds the nature of corporate equity as a moderator of the intermediary model,studying the difference between the role of government subsidies in state-owned enterprises and non-state-owned enterprises which enriches the theoretical model of the research field.The results show that in the six central provinces,government subsidies have significantly stimulated the short-term business performance of strategic emerging industries,but their market value has no significant impact.And the positive incentives mainly occur through direct effects.Although government subsidies also affect the short-term performance of enterprises by increasing R&D investment,however,due to the long-term cyclicality and uncertainty of technological innovation activities,and the fact that strategic emerging listed companies in the six central provinces may be less efficient in technology research and development activities,the influence of the intermediary effect actually weakens the main effect.After adding the regulatory variable of the nature of corporate equity,it is found that there is indeed a regulatory effect between the government subsidy,R&D investment and short-term performance of the firm.The nature of corporate equity regulates the main effect and the latter half of the mediating effect.That is to say,the nature of state-owned enterprises will strengthen the direct promotion of government subsidies on the short-term performance of enterprises,and will also strengthen the weakening effect of R&D investment on this direct effect.