Abstract
The stimulating issues of government innovation support to the market players' R&D vitality has always been the focus of innovation. This article analyzes the impact of government innovation support's two policies, namely, government subsidies and tax & fee returns, on the R&D input of agricultural enterprises from the perspective of government intervention. Moreover, this article is primarily focusing on the institutional investors, leading shareholders, and social audit institutions in the corporate governance to play a role in the improvement of shareholding and audit supervision mechanism. This article conducts unbalanced panel data regression tests based on the relevant data of government innovation support of A-share agricultural enterprises listed in Shanghai and Shenzhen from 2009 to 2019. The conclusions are as follows: Firstly, government subsidies have a significant crowding-out effect on R&D investment of agricultural enterprises, while tax & fee returns have a significant stimulating effect. Secondly, when the shareholding ratio of institutional investors and leading shareholders increases, the shareholding supervision mechanism strengthens the effect of government innovation support on enterprise R&D input. Finally, with the improvement of social audit institutions' auditing opinions, the enhancement of auditing supervision mechanisms has weakened the effect of government innovation support on enterprise innovation investment. These research findings can provide some academic supports and policy references for formulating appropriate government innovation support and giving full play to the role of shareholding supervision and audit supervision in corporate governance.
Highlights
With the development of the rural revitalization strategy, the issue of ‘‘agriculture, rural areas, and rural residents’’ has become the top priority of the whole Party’s work
The data comes from these databases of China Stock Market & Accounting Research (CSMAR), Flush Financial, and China Research Data Service (CNRDS), mainly including government innovation support, enterprise characteristics, resource allocation, different subject supervision mechanisms, and R&D activities (R&D inputs and outputs)
RESEARCH CONCLUSION This article analyzes the impact of government subsidies and tax & fee returns on the R&D input of listed agricultural companies from the perspective of government intervention and corporate governance
Summary
With the development of the rural revitalization strategy, the issue of ‘‘agriculture, rural areas, and rural residents’’ has become the top priority of the whole Party’s work. Based on the above analysis, this article proposes the following hypotheses from the perspective of corporate governance control: Hypothesis 4a: The improvement of audit supervision mechanism weakens the crowding-out effect of government subsidy support on R&D input of agricultural enterprises. The data comes from these databases of China Stock Market & Accounting Research (CSMAR), Flush Financial (iFinD), and China Research Data Service (CNRDS), mainly including government innovation support (government subsidies and tax & fee returns), enterprise characteristics (enterprise-scale, enterprise age, listing period), resource allocation (fixed asset investment, current assets, inventory, and cash flow), different subject supervision mechanisms (leading shareholder shareholding supervision, institutional investor shareholding supervision, and social auditing opinion supervision), and R&D activities (R&D inputs and outputs). The minimum value of the logarithm of tax refund is −3.330, the maximum value is 3.291, and the standard deviation is 1.000, which shows that the different degrees of tax & fee returns of agricultural listed enterprises are apparent
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