An Empirical Study on the Impact of Government Subsidies on the Operational Performance of Listed Companies in China
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v6i5.4489
Abstract
This paper examines the impact of Chinese government subsidies on the operational performance of listed companies. Methodologically, a panel fixed-effects regression model was employed, utilizing a sample of A-share listed companies covering the period 2014–2023 for empirical analysis. The results indicate that government subsidies indeed exert a significant stimulating effect on the operational performance of listed companies. Government subsidies serve as a direct source of funds that effectively alleviate financial pressure on enterprises, providing necessary support for various business developments, thereby promoting an improvement in operational performance. Furthermore, property rights heterogeneity analysis shows that government subsidies have a stronger stimulating effect on non-SOEs (non-state-owned enterprises). The operational mechanisms of non-SOEs are flexible, and government subsidies can efficiently enhance their operational performance. In contrast, SOEs exhibit lower efficiency levels, making it more challenging for government subsidies to translate into improved operational performance.
Keywords
government subsidies; operational performance of listed companies; heterogeneous effects
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