The Incentive Effect of Government Subsidies on the Development of Corporate Performance of New Energy Vehicle Enterprises

Abstract

In the case of economic and trade globalisation, from the point of view of the economic development of each country, the government is involved in the intervention between various industries, the current transition economic period, new energy vehicles as a future development trend, not only to meet the national requirements for innovation and green environmental protection, in the economic aspects of the same by the government's strong support. Subsidies are regarded as an important economic intervention tool that can solve many problems of market failure [1]. But for the size of the government subsidy amount can significantly affect the performance of enterprises? Based on the panel data of China's new energy vehicle (NEV) enterprises from 2018 - 2021, this paper investigates the impact of government subsidies on enterprise performance. It is found that the performance of enterprises and the amount of government subsidies are positively correlated; the impact of government subsidies on the solvency and operating capacity of enterprise performance is small; and the profitability of enterprises is greatly and significantly affected by the amount of subsidies.