Government Subsidies,Technological Innovation And Firm Performance

With the growing development of society and economy and the continuous improvement of people’s living standards,the state has gradually strengthened its efforts to promote cultural undertakings.Cultural industry occupies a strategic leading position in the national economy.Building a cultural power has become an important indicator in the modernization drive,and cultural enterprises have entered a stage of rapid development.The Fifth Plenary Session of the 19 th CPC Central Committee proposed to "improve the degree of social civilization,enhance the level of public cultural services,and improve the modern cultural industry system".In order to encourage the development of cultural industries and enterprises,the government extensively uses fiscal and tax policy tools to support the business activities of cultural enterprises,which provides a source of strength for alleviating the financing constraints of enterprises and driving the growth of financial performance.In view of the characteristics of high innovation and high added value of cultural enterprises,technological innovation activities have become an important focus for government subsidies to promote the improvement of financial performance of cultural enterprises.However,previous studies mostly stayed at the macro industrial level,and few examined the role path and boundary between government subsidies and financial performance from the micro perspective of cultural enterprises.Therefore,based on the micro-research situation of cultural enterprises,this paper first examines the effect mechanism of government subsidies on financial performance of cultural enterprises and the mediating path of technological innovation between government subsidies and financial performance of cultural enterprises.Secondly,from the perspective of internal governance,it reveals the driving effect of executive incentives on the "subsidies-innovation" path.Finally,based on the institutional environment,the boundary effect of property rights system and external factors of intellectual property protection on government subsidies driving financial performance is revealed.After reviewing and sorting out existing relevant literatures,this paper puts forward a hypothesis on the relationship between government subsidies,technological innovation and financial performance of cultural enterprises through theoretical induction and deduction,and introduces executive incentives,property heterogeneity and intellectual property protection as boundary conditions in the research framework to construct relevant theoretical models.237 cultural enterprises listed on the main boards of Shanghai and Shenzhen Stock Exchange were selected as the research samples,and the time observation window was set as 2009-2019 to construct the balanced panel database.Define the definition and measurement method of each variable,and use the econometric model to carry on the empirical test of the hypothesis in this paper.The research results show that:first,government subsidies have a positive impact on the financial performance of cultural enterprises,and technological innovation plays a mediating effect between the two.Government subsidies directly provide financial support for cultural enterprises,and indirectly release positive signals to ease the financing constraints of enterprises and improve the financial performance of cultural enterprises.At the same time,government subsidies promote the technological innovation of cultural enterprises,thus promoting the growth of financial performance.Second,from the perspective of internal governance,executive incentives in cultural enterprises,as a corporate governance factor,positively regulate the relationship between government subsidies and technological innovation.Executive motivation can effectively alleviate the information asymmetry and agency problems in modern corporate governance system,make up for the short-sightedness of management,and motivate the management to innovate.Third,from the perspective of institutional environment,property rights system and intellectual property rights protection system play a boundary role between government subsidies and the financial performance of cultural enterprises.Compared with state-owned cultural enterprises,the technological innovation driving effect of government subsidies is more significant in private enterprises.The level of intellectual property protection in the province where cultural enterprises are located positively moderates the relationship between technological innovation and firm financial performance.The higher the level of intellectual property protection is,the more significant the promoting effect of technological innovation on the financial performance of cultural enterprises is.Based on the micro motivation of the growth of cultural industry,this paper innovatively discusses the interaction path between government subsidies and financial performance of cultural enterprises.From the perspective of corporate internal governance,executive incentives to the perspective of institutional environment property rights,intellectual property rights protection system,all have boundary effects on the path of technological innovation.Based on the current development status of cultural enterprises in China and the above research conclusions,this paper puts forward corresponding countermeasures and suggestions from the internal and external perspectives of cultural enterprises,the government level and stakeholders from all walks of life.It is hoped to provide reference for the improvement of financial performance and digital transformation in the practical activities of cultural enterprises in China.