The Influence Of Government Subsidy On The Research And Development Of Listed High-tech Enterprises

At present,China is vigorously implementing supply-side structural reform to promote industrial transformation and upgrading by improving the ability of independent innovation.The government continues to introduce policies to encourage high-tech enterprises to increase investment in research and development.In 2018,all enterprises' R&D expenses are deducted before tax,and the scale of government subsidies also increases these years.Government subsidy is not only an important approach for the state to support the development of high-tech enterprises and guide external capital investment,but also the important source of funds for enterprises to carry out R&D activities.However,due to the information asymmetry and principal-agent problems between the government and enterprises,the government subsidy policies lack of effectiveness and pertinence,and the similar subsidy scale has obvious differences in the marginal utility of enterprise R&D under different financing constraints.Therefore,this paper selects enterprises in seven different industries which engage in supports from the government,have high industrial technical barriers and large proportions of R&D expenditure.These enterprises are divided into high financing constrains group and low financing constrains group and are researched from two dimensions-expended R&D expenditure and capitalized R&D expenditure.This paper makes a comparative study of the impact of government subsidies on the R&D innovation capability of these enterprises by studying those enterprises' data from 2013 to 2018.The empirical results show that:(1)the tax reform policy in 2018 promotes enterprises with high financing constraints to increase R&D investment,but has no significant impact on enterprises with low financing constraints,(2)government subsidies will have a positive effect on enterprise R&D activities,but its role will be weakened with the relief of corporate financing constraints.(3)it is common for enterprises to adjust cash holdings to smooth R&D expenditure,in enterprises with low financing constraints,government subsidies will adjust the R&D smoothing effect of cash holdings;(4)compared with expense-based R&D expenditure,government subsidies have no significant effect on the capitalized R&D expenditure of enterprises,indicating that government subsidies have little effect on the output promotion of R&D achievements.Therefore,this paper suggests that the government should reduce the information asymmetry between investors and enterprises by cooperating with the financial market,linking government subsidies to research output,and implementing different government subsidy policies according to the financing constraints of enterprises.At the same time,the government also can establish a sound supervision mechanism,increase the illegal cost of enterprise compensation fraud,and effectively improve the positive role of government subsidies in enhancing the R&D strength of high-tech enterprises.