Research On The Influence Of Government Subsidies On Enterprise Innovation Ability And Financial Performance

In 2016,the Ministry of Finance,the Ministry of Science and Technology,the Ministry of Industry and Information Technology and the National Development and Reform Commission issued the Notice on the Financial Support Policy for the Promotion and Application of New energy Vehicles during 2016-2020.By adjusting the government subsidy policy,the selection and elimination mechanism of new energy vehicles were established,so that the new energy vehicle industry gradually changed from government-led to market-led.It aims to establish a long-term mechanism for the development of the new energy automobile industry.As a powerful backbone force in the economic market,the automobile industry should also put the development of technological innovation ability of enterprises in the first place.For enterprises in the new energy automobile industry,technological innovation is their core competitiveness and an important means to improve their financial performance.By investing a large amount of capital and human costs in research and development,new energy vehicle enterprises can improve their innovation ability,obtain innovation results,and apply the innovation results to automobile products,so as to increase automobile sales,gain a higher market share in the new energy vehicle market,and finally obtain profits.In order to develop new energy automobile industry,our country has issued a series of subsidy policies and supporting policies to encourage enterprises to carry out technological innovation,so it is very necessary for new energy automobile enterprises to carry out research and development activities,increase investment in innovation,and improve enterprise innovation ability.Based on the impact of government subsidies on BYD and the importance of enterprise innovation ability in the development of new energy automobile industry,this paper studies the impact of government subsidies on BYD’s innovation ability and financial performance through comparative analysis and inductive analysis,combined with the actual operating situation of BYD.The innovation of this paper is that the analysis of relevant data of BYD from 2015 to 2022 can reflect the impact of government subsidy adjustment on BYD,and the research perspective is innovative to a certain extent.In the study of the impact of government subsidies on BYD’s innovation ability and financial performance,this paper first analyzes the impact path based on relevant theories,then selects data that can measure enterprise innovation input and innovation output to analyze BYD’s innovation ability,and selects relevant financial indicators to analyze BYD’s financial performance.Finally,combined with the behavior of BYD,the influence of government subsidies on BYD is summarized,and the research content is innovative to some extent.Through the analysis of the influence path of government subsidies on BYD’s innovation ability and the analysis of BYD’s innovation input ability and innovation output ability,this paper concludes that government subsidies can improve BYD’s innovation ability to a certain extent,and believes that the number of BYD’s patent authorization is the result of the enterprise’s continuous R&D investment,and the relationship with government subsidies is not significant.Moreover,through the comparative analysis between BYD and other enterprises in the new energy automobile industry,it is believed that BYD has been ahead of other enterprises in innovation input capacity and innovation output capacity.Through the analysis of the influence path of government subsidies on BYD’s financial performance and the analysis of BYD’s financial performance,it is concluded that BYD has problems such as high operating costs and slow turnover of receivables,which all cause the problem of BYD’s solvency.Further attention is needed to further analyze BYD’s financial performance before and after deducting government subsidies.It is concluded that government subsidies have a greater impact on BYD’s profitability,operating ability and development ability,but a smaller impact on its solvency.