Research On The Impact Of Government Subsidies On The New Energy Vehicle Enterprises Performance

In 2020,China set a goal to achieve the carbon peak by 2030 and carbon neutrality by 2060,which is an important strategic decision of China.Implementing the "double carbon"strategy is necessary to break the resource and environmental constraints and achieve sustainable development.Implementing the strategy is also necessary for coping with the world’s significant changes,building a community of human destiny and promoting the harmonious coexistence of human beings and nature.As one of the industries with the most significant carbon emissions,the auto industry has been the focus of low-carbon reform in the past.Meanwhile,developing new energy vehicles has effectively alleviated the problem of carbon emissions.It is also helpful in promoting the achievement of "double carbon" goals.In 2005,new energy vehicles entered the market.In 2009,the Chinese government began to subsidize the new energy vehicle industry to accelerate the layout of the new energy industry.The Government subsidies support the industry’s vigorous development all the way,which has played a vital role in improving the overall performance of the domestic new energy vehicle industry.However,under the influence of the three-year COVID-19 pandemic,local governments have undertaken high livelihood expenditures.Thus there is a certain pressure on fiscal revenue.It still needs further research that improves the financial subsidy policy’s accuracy and effectiveness and identifies individual enterprises’ funding needs to promote the development of the new energy vehicle industry.This paper combs through relevant domestic and international studies.It analyzes the impact of government subsidies on the performance of new energy vehicle enterprises from the market failure theory,signal transmission theory,stakeholder theory and rent-seeking theory.BYD entered the domestic new energy vehicle market relatively early and received relatively more government subsidies,which is representative.Therefore,this paper selects BYD,a leading enterprise in the new energy vehicle industry,as a case for analysis.This paper first builds the evaluation system for BYD’s enterprise performance,analyzing the financial and non-financial performance.The financial performance includes operating ability,profitability,solvency and development ability.The non-financial performance includes innovation performance,environment protection performance and market performance.This paper uses the entropy value method to evaluate the BYD’s enterprise performance comprehensively.Secondly,this paper chooses the Pearson analysis method to study the impact of government subsidies on BYD’s financial and non-financial enterprise performance.This paper also analyzes the efficiency of the impact of government subsidies on BYD’s enterprise performance based on the data envelopment method.Finally,this paper generates the following conclusions:(1)the government subsidies had a strong positive impact on the BYD’s enterprise performance before 2016,but the efficiency of this impact diminished and generated redundancy after 2016(2)from the aspect of the financial performance,the government subsidies show an overall positive impact on BYD’s financial enterprise performance(3)from the aspect of the nonfinancial performance,government subsidies demonstrate a positive impact on BYD’s innovation and market enterprise performance,but indirectly harm their environment protection performance.The above research has led to some recommendations for enterprises and the government.For enterprises,under the background of the withdrawal of government subsidies,new energy vehicle enterprises should actively innovate to improve their core competitiveness.They should consider the stakeholders and take social responsibility in the development process.The government should keep following the socialist market economic system.Based on the law of market development,the government needs to guide the enterprises’ development correctly.The government should also broaden the scope of supervision in the subsequent development of relevant subsidy policies and implement different supervision measures before,during and after the subsidy.