The Influence Of Government Subsidy On Enterprise Value

With the appearance of energy crisis and the deterioration of the environment,saving energy and reducing emissions has gradually become a global social issue.Because of the non-pollution,renewability and other advantages of the new energy vehicle,new energy automobile gets widespread attention from the society.The government promotes industrial development through subsidies and tax breaks.Moreover,with the frequent occurrence of "subsidy cheating" incidents of new energy vehicles in recent years,the drawbacks of government subsidies have gradually emerged.The effectiveness of government subsidies,which promotes the development of new energy enterprises and enhances the value of enterprises,has aroused extensive discussion in the academic and practical circles.Unfortunately,there is no consistent conclusion in relevant studies.Therefore,it is of great significance to study the impact of government subsidies on the enterprise value of new energy vehicles,which in turn improves the efficiency of government subsidies,promotes the healthy development of new energy vehicles,and improves the allocation rate of resources.Taking Jianghuai Automobile as an example,this paper firstly analyzes the influence of government subsidies on financial and non-financial performance of the enterprise by using relevant principles.On this basis,the EVA(Economic Value Added)indicators of enterprise value,including financial and non-financial indicators,are constructed to analyze the impact of government subsidies on enterprise value.As a result,it is found that government subsidies conceal the possible risks of enterprises and lead to their dependence on government subsidies.Then,further research shows that both enterprises and governments have corresponding reasons:1)From the perspective of enterprises,it is found that government subsidies may to some extent promote the behavior of "rent-seeking".In order to study whether the capital waste caused by "rent-seeking" produces crowding out effect on enterprise research and development,this paper analyzes the research and development effect of jianghuai enterprises.Through the research on research and development investment of jianghuai automobile,it is found that the research and development of enterprises is not enough,and the government subsidies have a crowding out effect on the research and development investment,which hinders the innovation of enterprises.At the same time,through the analysis of the investment efficiency of jianghuai automobile,it is found that jianghuai itself has the situation of excessive investment,and the investment cannot get the return of the corresponding efficiency.2)From the perspective of the government,it is found that there are some problems in the way of government subsidies,such as insufficient supervision,substantial amount of subsidies and lack of risk assessment methods,etc.It is precisely because of these factors that enterprises constantly pay more and more attention to seek government subsidies,rather than research and development.Ground on the research results mentioned above,this paper is going to put forward relevant suggestions from the perspective of enterprises and the government respectively,in order to further promote the development of the new energy automobile industry in China and improve the utilization rate of government subsidies.New energy automobile enterprises shall be aware of the role of technological innovation,and try their best to find a technological breakthrough and improve the ability of R&D innovation,thus reducing the over-dependence on the government.The government shall adhere to the market-oriented and state-led development pattern,strengthen the supervision and risk assessment methods towards the new energy automobile industry,and promote the development of the industry.