Heterogeneous Influence of Government Subsidies on Enterprise Performance:Based on the Perspective of Industry Life Cycle
ZHENG Fei1, SHEN Xianghua1, LU Ren2
1. School of Accounting, Henan University of Economics and Law, Zhengzhou 450046, China; 2. School of Business Administration, Guangdong University of Finance and Economics, Guangzhou 510320, China
Abstract Based the data of Chinese listed companies from 2013 to 2017, this paper empirically tests the relationship between government subsidies and enterprise performance from the perspective of industrial life cycle. The results show that on the whole, the impact of financial subsidies on enterprise performance is positive and weakly significant. However, after distinguishing the stages of the industrial life cycle, the authors find that the financial subsidies significantly stimulate enterprises’ performance when the enterprises are in growing or recessing period, but have little influence on their formation or mature period. After having a further study on the subdivided samples, the authors find that financial subsidies have a significant incentive effect on the performance of non-state-owned enterprises in the period of growth or recession, but have a weak and significant incentive effect on state-owned enterprises in the period of formation and even have no significant impact on other types of enterprises.
ZHENG Fei,SHEN Xianghua,LU Ren. Heterogeneous Influence of Government Subsidies on Enterprise Performance:Based on the Perspective of Industry Life Cycle. Economic Survey, 2021, 38(1): 096.
2021, Vol. 38 
