Research On The Impact Of Government Subsidies On Financial Performance Speciality Or Professional Fields

The development of LCD manufacturing industry is not only related to the future freedom of China’s LCD,but also plays an important role in the long-term sustainable development of China’s economy.LCD panel manufacturing industry is a capitalintensive and technology-intensive industry,which needs a lot of capital and technology support in the development process.As a strategic emerging industry,related projects have received a lot of government policy and financial support.Our government has issued a series of fiscal and financial policies,among which government subsidy is an important way for the government to guide the market and the development of LCD panel manufacturing industry.This paper takes leading enterprises in the field of LCD panel manufacturing as the research object to study the impact of government subsidies on enterprise profitability.Firstly,based on the research background,research purpose and significance,the domestic and foreign literatures related to government subsidies and profitability were reviewed to understand the current research status.Next,through the analysis of the theory,based on the annual report data of LCD panel manufacturing enterprises before and after from 2011 to 2020,the status of government subsidy.Next,through the analysis of the theory,based on the annual report data of LCD panel manufacturing enterprises before and after from 2011 to 2020,the status of government subsidy for LCD panel manufacturing industry is analyzed.Then,by selecting BOE,a leading enterprise in the panel industry,the basic development situation of BOE,as well as the scale and channels of government subsidies in recent years.Finally,from the direct path and indirect path,the influence mechanism of government subsidies on BOE’s profitability is explored.The direct path is:government subsidies directly increase the cash flow and pre-tax profit of enterprises,improve the short-term profitability ofenterprises;The indirect path is that government subsidies can improve the profitability of enterprises by influencing their investment strategy and innovation output.In this paper,by analyzing the boe,make use of government subsidies in developing experience,draw the conclusion: the government subsidies to current earnings,but the enterprise in the process of development,can accept government subsidies,but not overly dependent on,and continuously enhance the core competitiveness,combined with its own development direction and the national policy,economic development direction,Provides guidance to enterprises in formulating strategies.