Study On The Influence Path Of Government Subsidy On Financial Performance In CATL

In the past forty years,China has achieved economic take-off.With the rapid increase of the global economic aggregate,limited environmental resources have attracted people’s attention,so new energy vehicles have entered the human vision.The development of the new energy vehicle industry is crucial to solving the energy shortage and reducing environmental pollution.However,the new energy vehicle industry is a technology-intensive industry,and its development cannot be separated from the continuous support of government policies.Government guidance is closely related to the flourishing of enterprises.Nowadays,government subsidies to the new energy vehicle industry are relatively strong,so it is necessary to study the impact of government subsidies on the financial performance of enterprises in this industry.In this paper,CATL,a leading enterprise in the new energy vehicle industry,is selected as the case study object to study the data from 2015 to 2020.Firstly,it analyzes the basic development of CATL,as well as the scale and approach of government subsidies in recent years.Secondly,the paper explores the influence mechanism of government subsidies on financial performance in the era of CATL from the perspective of direct path and indirect path.The direct path is: government subsidies directly increase the cash flow and pretax profits of enterprises,and improve the short-term financial performance of enterprises;The indirect path is that government subsidies can improve the financial performance of enterprises by influencing their investment strategies.Finally,through the analysis of the change of financial indicators before and after deducting government subsidies,further understand the role of government subsidies in the development of enterprises.Based on the analysis of the experience of using government subsidies in the development of CATL,this paper draws a conclusion:Government subsidies have a positive impact on the current financial performance to a certain extent.However,enterprises should not over-rely on government subsidies in the process of development.They should enhance their core competitiveness,combine their development direction with national policies and economic development direction,and provide guidance for enterprises in the formulation of strategies.