Research On The Impact Of Government Subsidies On Jianghuai Automobile’s Financial Performance

Recently,the growth rate of my country’s automobile production and sales is relatively slow,coupled with the frequent trade conflicts between China and the United States,the reduction of government subsidies,and changes in environmental protection standards have caused a greater impact on the development of the industry.After analyzing the existing data,it can be found that compared with 2018,my country’s automobile production and sales have decreased in 2019,by 7.5% and 8.2%.Under the relatively sluggish environment for the overall the development of the automobile industry,the production and sales of new energy vehicles are continuously increasing every year,and the development prospects are also very good.Therefore,in order to promote the development of the automobile industry and the smooth transition of the traditional automobile industry strategy,the government has issued many policies to support its development.Large government subsidies for many years have been directly included in the non-operating income account.This will undoubtedly make it difficult for external information users to understand the true financial status of the company,which will misunderstand the true financial performance of the company.In 2017,the Ministry of Finance adjusted and improved the government subsidy guidelines,including new energy vehicle subsidies in operating income,of which subsidies related to business activities of the company are included in other income.For the standards revised in 2017,it remains to be studied whether corporate assets,expenses,and revenues are transparent,and whether the applicability of corporate financial statements is improved.After analyzing the theoretical basis and research results of the relationship between government subsidies and financial performance,this paper comprehensively considers the factors affecting the scale of subsidies and so on,and finally chooses Jianghuai Automobile as the object of case analysis,and conducts a longitudinal analysis of its financial data from 2014 to 2019.The method of excluding the amount of government subsidies is to discuss the influence of government subsidies on the financial performance index is then measured by factor analysis method.It is found that government subsidies have a temporary effect on the promotion of financial performance of enterprises,which cannot promote financial performance in reality.It can cover up the real financial situation of enterprises and cause enterprises to ignore their own problems.Therefore,for companies,it is necessary to fully understand the market from their own considerations to deal with the hidden dangers that affect their financial performance after the withdrawal of new energy vehicle subsidies.