Research On The Impact Of Government Subsidies On Investment Decision And Financial Performance Of Power Battery Industry ——Taking CATL As An Example

With the advocacy of low carbon environmental protection has become a consensus,new energy vehicles began to enter the public’s vision,but also caused the attention of governments around the world.In this context,the global new energy vehicle industry chain is also booming,and behind the development of government support policies,government subsidies are the main means for governments to support the new energy vehicle market and guide the development of the industry chain.In the whole industrial chain of new energy vehicles,the most core link is the power battery industry in the middle stream.The cost of power battery is usually close to 40% of the vehicle cost,which is also the core technology link.In order to promote the development of China’s power battery industry,the Chinese government has adopted many ways.From the beginning of subsidies for the whole new energy vehicle industry chain,the state has been adjusting policies to guide the development of the power battery industry,and the subsidy policy for the new energy vehicle market has also improved China’s new energy vehicle sales and power battery installation in the short term.However,the role of government subsidies is not all positive.Under the guidance of government subsidies,some enterprises invest actively with cash flow,expand capacity,and invest in research and development to enhance their competitiveness.However,some enterprises rely too much on government subsidies,and even destroy the market order by means of cheating,which affects their investment decisions and is not conducive to their normal operation and development.In such an environment,it is of great significance to study the impact of government subsidies on the power battery industry for enterprises’ own investment decisions and government subsidy mechanism policy formulation.At present,aiming at the effects of government subsidies for power battery industry,many scholars around the influence of the government subsidies on the company’s financial performance using different angles such as corporate profitability indicators,enterprise asset size and so on has carried on the empirical research,but does not directly from the conclusions show that the government subsidy path as well as the influence of the effect on financial performance indicators.Some scholars also analyze the influence of government subsidies from the perspective of their influence on enterprises’ investment decisions.Government subsidies mainly play a guiding role in enterprises’ investment decisions,but there is a lack of relevant path and effect studies,and few literatures are introduced to study the indirect impact of enterprises’ investment decisions on financial performance.Due to the problems of cheating subsidy,unreasonable use of subsidies by enterprises and lack of subsidy distribution mechanism in the power battery industry,it is urgent to improve the research on the impact of government subsidies on the investment decisions and financial performance of the power battery industry in the middle reaches of the new energy vehicle industry chain.Based on the above research status,this paper selects CATL,a core supplier in the power battery industry,as the main body of the case study.Firstly,it studies the influence path and effect of government subsidies on enterprise investment decision,and then extends to the influence path and effect on financial performance,and draws the following conclusions:Under the guidance of the government subsidy policy,the CATL in capacity investment invested large sums of money to increase production capacity,as well as the R＆D spending increased year by year,with remarkable achievements enterprise technology research and development,keep the enterprise in the field of power battery technology advantages,enhance the market competitiveness,but also indirectly has a positive influence on long-term performance of the enterprise level.In terms of the financial indicators of the enterprise,net profit,total assets and other items have increased greatly after 2015,but the indicators of profitability and growth capacity of financial performance are not good on the whole.By deducting the impact of government subsidies on the financial performance of CATL,the comparative analysis shows that government subsidies can improve corporate profitability and short-term solvency indicators in the short term,and have a positive impact on growth capacity indicators,but the overall impact on operating capacity and long-term solvency indicators is not significant.Finally,relevant suggestions are given: In local government subsidies reduce tend to close down backward production facilities and new energy vehicles government subsidies reduce background,the enterprise should be guided by research and development investment management decisions on a reasonable,rational utilization of government subsidies and rapid development itself and gradually get rid of the dependence on government subsidies,strengthen their own core competitive ability,make the enterprise under the background of facing subsidies reduce stable healthy development.Government subsidy mechanism also needs to develop a more scientific and reasonable distribution mechanism,and establish a diversified local government performance assessment system,so that government subsidy policies can better guide the long-term development of enterprises.