The Impact Of Government Subsidies On BYD’s Corporate Performance

The report of the 20th National Congress of the Communist Party of China(CPC)proposed that we should actively and steadily push forward carbon peaking and carbon neutrality.Reduce energy consumption,mainly refers to coal,oil and other fossil energy consumption,from the total carbon emissions and intensity of two aspects of control.Efficient use of clean and low-carbon energy,accelerate the transformation of transportation,industry,manufacturing and other fields,which for the development of new energy vehicle enterprises pointed out the direction.But as a new thing,new energy vehicle needs the support of national policy.Since 2009,after the implementation of government subsidy policy,new energy vehicle industry ushered in development opportunities.With the new energy vehicle technology mature,government subsidies gradually withdraw from the stage of history.In the course of the development of new energy vehicle industry,the role of government subsidies and the impact on the performance of New Energy Vehicle Enterprises is worth thinking and studying.In this paper,first of all,the government subsidies,corporate performance,internal investment,innovation performance,market performance related to the theory and literature do a systematic review,then,the paper constructs the mechanism of government subsidy on the enterprise performance of New Energy Automobile Enterprises,and studies the development and subsidy of new energy automobile industry.A case study was conducted to examine the impact of government subsidies on BYD’s financial performance since 2016,using BYD Company as a case study,this is complemented by a comparison of Jády’s in-house investment,innovation performance and market performance with government subsidies.By comparing Jády’s profitability,solvency,operating ability and growth ability,we can get the impact of government subsidies on BYD’s financial performance.In the aspect of non-financial performance,internal investment,innovation performance and market performance are chosen as research objectives to study the impact of government subsidies on them.Through the above analysis,we can know that: in the financial performance,government subsidies can improve the profitability,solvency and growth ability of enterprises,but the impact on operating capacity is not significant;in the internal investment,in the aspect of innovation performance,government subsidy can increase R & D input and benefit R & D output of enterprises;in the aspect of market performance,the change of government subsidy policy,has the remarkable influence to the enterprise stock price movement.It is hoped that the above BYD Company research will provide valuable reference for the new energy vehicle manufacturers to enhance their enterprise strength,realize continuous technological advantages and cope with the decline of government subsidies.For the government subsidies to reduce the impact of new energy vehicle enterprises,gentle retreat provides a valuable reference.