The Study On The Impact Of Government Subsidies Recession On The Firm Performance Of New Energy Automobile Enterprises

Considering the relevant landmark policies issued,the market scale of new energy vehicles,the level of technological development and other factors,this paper divides the development process of China’s new energy vehicle industry into three stages: the difficult ice breaking in the embryonic stage,the high-speed growth stage under the system layout and the new stage of high-quality development.The government subsidy policies under these three stages have also changed significantly.This paper will focus on the decline of government subsidies around 2019.During this period,the characteristics of the decline of government subsidies include the following three points:the technical system is stable and the decline of subsidies is gentle;the subsidy object has changed from "inclusive" to "selecting the best and supporting the strong and highlighting the advanced";optimize the liquidation system and alleviate the funds pressure.So as to study how the performance level of new energy vehicle enterprises with high dependence on government subsidies will change,this paper selects BAIC Futian as the case object for analysis.This paper selects the relevant data disclosed in the 2015 to 2020 annual reports of BAIC Foton to evaluate the its overall business performance from two parts:financial performance and innovation performance.After a series of analysis,the following two conclusions are finally drawn: First,the recession of government subsidies for new energy vehicles has two sides on the financial performance of it.On the one hand,due to the input of government subsidies helps to improve the financial performance of BAIC Foton,the profitability,debt repayment and operating capacity of it have been improved driven by the subsidies.Therefore,with the decline of government subsidies,its financial performance will inevitably deteriorate.On the other hand,with the gradual promotion of the subsidy decline policy,the sensitivity of BAIC Foton’s financial performance to the subsidy decline is reduced,and the dependence on the subsidy is gradually reduced,forcing enterprises to rely more on their own capital to improve their financial performance.Second,there is a positive correlation between the fluctuation of R & D output efficiency and the recession of government subsidies,but the correlation is weaker than financial performance.Firstly,the decline of R&D subsidies leads to a significant decline in R&D investment efficiency,but with the extension of policy implementation time,the sensitivity to the decline of subsidies decreases;Secondly,the rise and fall of patent output in R&D output efficiency is positively correlated with the decline of government subsidies,while sales revenue is not correlated with it.Therefore,the decline of government subsidies has no significant impact on innovation output efficiency,and the incentive effect of R&D subsidies on innovation output efficiency needs to be further strengthened.Finally,this paper gives some advices from the government and enterprises,in order to help the government optimize the policy design in the final declining stage of new energy vehicle subsidies,so as to help enterprises get through this stage smoothly,and improve the incentive effect of subsidies on innovation performance.