| Against the backdrop of global energy shortage and climate change,countries worldwide have placed high priority on developing the new energy vehicle(NEV)sector to further boost their automotive industry,taking advantage of its superiority in saving energy and mitigating environmental pollution.Many countries have introduced favorable industrial policies to promote new energy vehicles.As the second largest country in the world in terms of vehicle ownership,China is in great demand of oil and has a high dependency on it as well.Therefore,it is of absolute significance and necessity for the country to grow a strong NEV sector.It is not only an effective way for China to address its strategic needs for energy conservation and emission reduction,but also an important decision for China to transform from a strong auto maker to a strong auto power.In 2001,developing NEV was put on the government agenda,and strong policy support has been given to it since then.In 2010,it was listed by the Chinese government as one of the seven Strategic Emerging Industries,followed by a series of finance and taxation policies in favor of developing NEV.These support policies and measures have proven to be effective in boosting the development of NEV,among them the financial subsidy policy has played an essential role.However,with the great support from the government and the influx of a large quantity of capital,the disadvantages of financial subsidy policy have also started to show.Some NEV enterprises have grown to become excessively relied on government subsidies,and “subsidy cheating” incidents occurred frequently.In2016,the Chinese government fined five auto makers who defrauded it of a total of 1-billion-yuan worth of subsidies.The occurrence of such fraudulent incidents has led to the decision of higher threshold and significant cuts to subsidies for NEV,with a full-on withdraw expected in 2020.What follows will be a series of chain reactions from tightened capital chains to the collapse of enterprises with low capabilities against risks.The NEV industry will come under great pressure.In view of this,the paper attempts to explore the following questions: How effective are the fiscal subsidy policies for the NEV industry? Have they improved the financial performance of NEV enterprises? In the face of significant subsidy cuts,how can the Chinese government optimize existing policies to help the NEV enterprises make a smooth transition,and how can these enterprises better exploit the current subsidizing scheme to achieve long-term development?This paper examines A-share listed companies in the NEV industry,and sets the short-term financial performance and long-term financial performance as the explained variables,fiscal subsidy as the explanatory variable,and the size,asset-liability ratio,total asset turnover rate of a company as the control variable to establish a multiple regression model to study the impact of fiscal subsidy on the financial performance of NEV enterprises,arriving at the conclusion that fiscal subsidy has a significant positive effect on their short-term financial performance,with little negative effect on the long-term financial performance.What distinguishes this paper from the existing literature is that: 1)In terms of the research angle,instead of directly studying the influence of fiscal subsidy on the financial performance of business,the paper carries out a time-based analysis of the effect of fiscal subsidy policy.The analysis sets the short-term financial performance and long-term financial performance as the explained variables,the effect of fiscal subsidy policy on both are studied separately.A comprehensive and objective description of the actual influence of financial subsidy on NEV enterprises leads us to reflect on the issue of inadequate utilization of fiscal subsidized funds.2)In terms of the content of study,the rapid development of NEV in recent years has led to increased diversity of research literature in this area.Among them,studies on policy interpretation account for a large proportion of the literature body.Studies doing quantitative analysis mostly approaches the topic by analyzing industrial policy on the whole.While this paper further narrows down the topic and studies the influence of fiscal subsidy on financial performance of NEV enterprises by using a combination of qualitative and quantitative analysis from multiple perspectives including theory,reality and empirical evidence.Through a well-structured analysis of the research topic,the paper finally gives a comprehensive and detailed description of the research outcome to provide reference basis for government and companies.3)In terms of the research object,the paper has a relatively wide range of options for the sample election.Its research object include NEV enterprises both upstream and downstream of the industrial chain,adding more credibility to its research outcomes. |
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