Effects of Government Subsidies on the Economic and Social Performance of Marine Enterprises-Taking Chinese Listed Enterprises as Examples

Abstract

Tao, L.; Li, R., and Tian, M., 2020. Effects of government subsidies on the economic and social performance of marine enterprises-Taking Chinese listed enterprises as examples. In: Al-Tarawneh, O. and Megahed, A. (eds.), Recent Developments of Port, Marine, and Ocean Engineering. Journal of Coastal Research, Special Issue No. 110, pp. 71–75. Coconut Creek (Florida), ISSN 0749-0208.With the extensive exploitation of ocean in the 21st century, the marine industry is receiving more and more attention. Although government subsidies have played an important role in the development of enterprises as a helping hand, there has been still no targeted study on the effects of government subsidies obtained by marine enterprises. Based on 76 listed marine enterprises from 2010 to 2018, the authors tested the effects of government subsidies on the economic and social performance of enterprises using a fixed-effect model, and also explored the role of government subsidies in marine enterprises of different ownerships. The results show that government subsidies can bring resource advantages to marine enterprises and promote their economic performance; however, the effects of government subsidies on social performance is negative due to the existence of agency problem. Moreover, in non-state-owned enterprises, government subsidies have a positive effect on their economic performance and a negative effect on social performance while the relationships are not significant in state-owned enterprises. The research findings provide empirical evidence for the research on government subsidies.