Abstract
As one of the main actors of market economy, enterprises are easily affected by the external environment. Whether the external environment of government intervention affects the profitability of enterprises? Using the regression method of panel fixed effect to analyze the relevant data of scale industrial enterprises in Chinese 31 provinces and cities from 2011 to 2017, it found that government intervention has a negative effect on the improvement of the profitability of enterprises, and the negative effect of government intervention on the profitability of state-owned enterprises is far higher than that of private enterprises.
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