Study On The Impact Of Government R&d Subsidies On Enterprise Value Enhancement In Biomedical Industry From The Perspective Of Financial Flexibility

During the epidemic period,the global market continued to decline,and the stock market situation was grim,but the biomedical industry plate showed a good financial market value.The biomedical industry is related to the life and health of the people.Under the national innovation transformation strategy,governments at all levels are constantly increasing the R&D subsidies for the innovation of enterprises in the industry.Innovative projects can help companies in the biomedical industry improve their competitiveness,and enable them to gain higher profits and enhance their value.Under the background of downward economic environment,turbulent international pattern and high risk of innovation activities,the financial flexibility of enterprises has been paid more and more attention.Financial flexibility can enable enterprises to flexibly optimize resource allocation when confronted with emergencies.Therefore,the research on the mechanism of government R&D subsidies on enterprise value based on financial flexibility will help to effectively play the economic benefits of R&D subsidies and improve enterprise value.This article first sorts out the domestic and foreign research status,defines the concepts,and propose hypotheses based on relevant theories.Subsequently,this article conducts empirical analysis on sample data of biomedical industry enterprises from 2010 to 2020.The fixed-effect model is used to verify the main effects of government R&D subsidies and enterprise value as well as the heterogeneity of property rights.The adjust effects of cash flexibility and debt flexibility on the relationship between the two are also regressed.Through empirical analysis,this article draws the following conclusions:(1)Government R&D subsidies can positively influence the enterprise value of non-state-owned enterprises and negatively influence the enterprise value of state-owned enterprises.The positive correlation of non-state-owned enterprises smooths out the negative correlation of state-owned enterprises for the overall industry sample.(2)The cash flexibility of enterprises can significantly strengthen the promotion of government R&D subsidies on the value of non-state-owned enterprises and the inhibitory effect on the value of state-owned enterprises.Non-state-owned enterprises can flexibly allocate resources with their high cash reserves to ensure the stable conversion of innovation activities and promote the increase of enterprise value.However,state-owned enterprises face less financing constraints.A higher level of cash flexibility reserve exacerbates the crowding-out effect of government R&D subsidies,which is not conducive to the increase of enterprise value.(3)The debt flexibility of enterprises can enhance the positive impact of government R&D subsidies on the enterprise value of non-state-owned enterprises,but it has no significant effect on state-owned enterprises.Non-state-owned enterprises face higher financing constraints,and a high level of debt flexibility can reduce the financial risk and guarantee the value conversion of innovation activities.As for the state-owned enterprises,facing lower financing constraints,the reserve of debt flexibility cannot effectively strengthen the value conversion of government R&D subsidies.