Article Versions
Export Article
Research Article
Open Access Peer-reviewed

The Impact of Government Subsidies on the R & D Investment and Business Performance of GEM Enterprises in China

Yazhu Feng1,, Siyu Zhai1

1School of Economics and Management, Shanxi University, Taiyuan, China

Journal of Finance and Accounting. 2020, 8(1), 16-22. DOI: 10.12691/jfa-8-1-3
Received November 01, 2020; Revised December 02, 2020; Accepted December 09, 2020

Abstract

Based on the data of China's GEM companies from 2015 to 2017, this paper uses linear regression analysis model to verify the relationship among government subsidies, R&D investment and business performance. The results show that government subsidies have no significant impact on business performance, but when the intensity of government subsidies increases, the R & D investment of GEM enterprises also increases significantly. On this basis, we also concluded that the existence of R & D investment makes the government subsidies to be positively correlated with the business performance. Therefore, there is a mediating effect of R & D investment between government subsidies and business performance.

Keywords:

government subsidies, R & D investment, business performance, mediating effect
[1]  Liu Hong, Xiao Meifeng, Tang Qingquan. “Incentive and Crowding out Effects of R & D Subsidies on R & D Expenditure of Enterprises -- An Empirical Analysis Based on the Data of Chinese Listed Companies”, Business Management, 34(04). 19-28. 2012.
 
[2]  Zhang Xiaohong, Lu Yuduo. “An Empirical Research of the Impact of Government Subsidies on Enterprises' R & D Investment”, Science and Technology Management Research, 34(15). 204-209, 2014.
 
[3]  Shen Pengyuan, Zou Haifeng. “Government R & D Subsidies and R & D Investment of Enterprises-Based on Chinese Listed Manufacturing Companies”, Shanghai Journal of Economics, (08). 84-93. 2018.
 
[4]  Eui Young Lee,Beom Cheol Cin. “”. Technological Forecasting & Social Change, 2010.
 
[5]  SaulLach. ”. The Journal of Industrial Economics,2003
 
[6]  Leonard, W.N. “Research and Development in Industrial Growth”. Journal of Politics, 1971.
 
[7]  Qi Mei. “Empirical Research on R & D Investment and Corporate Performance-Based on Listed Companies on SME board”, Communication of Finance and Accounting (06). 49-51. 2013.
 
[8]  Zhang Jian, Zhang Linghong. “The Impact of R & D Investment on Business Performance: Empirical Evidence from Chinese Listed Companies from 2009 to 2011”, Scientific Decision Making, (01). 54-72. 2014.
 
[9]  Baruch Lev, Theodore Sougiannis. “The Capitalization, Amortization, and Value-relevance of R&D”, Journal of Accounting and Economiacs, (21).107-138. 1996.View Article 
 
[10]  Jordi McKenzie,W. David Walls. “”. Journal of Cultural Economics. (2). 2013.View Article 
 
[11]  Zhuang Wanting, Li Fangfeng, Li Anlan. “Research on the impact of government subsidies on Enterprise Performance -- Based on the mediating effect of enterprise R & D investment”. Communication of Finance and Accounting. (30). 53-57. 2018.