The Influences of Government Subsidies on Performance of New Energy Firms: A Firm Heterogeneity Perspective

Manzhi Liu, Liyuan Liu, Shichun Xu, Mingwei Du, Xianxian Liu and Yanqin Zhang
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Manzhi Liu: Management School, China University of Mining and Technology, Xuzhou 221116, China
Liyuan Liu: Management School, China University of Mining and Technology, Xuzhou 221116, China
Shichun Xu: Management School, China University of Mining and Technology, Xuzhou 221116, China
Mingwei Du: Management School, China University of Mining and Technology, Xuzhou 221116, China
Xianxian Liu: Management School, China University of Mining and Technology, Xuzhou 221116, China
Yanqin Zhang: Management School, China University of Mining and Technology, Xuzhou 221116, China

Sustainability, 2019, vol. 11, issue 17, 1-20

Abstract: Based on the empirical analysis of panel data on new energy listed companies in China, the relationships among government subsidies, enterprise research and development input (R&D input), and firm performance are explored to measure the impact of government subsidies on firm performance and the mediation mechanism of R&D input. In addition, the effects of the moderation variables of regional characteristics and state ownership are measured from the enterprise heterogeneity perspective. The results show that government subsidies have a positive promoting effect on R&D input; R&D input has a two-year lag positive effect on firm performance; government subsidies have a two-year lag positive effect on firm performance through the mediation role of R&D input. Regional characteristics and enterprise properties moderate the effect of government subsidies on firm performance. Government subsidies have a greater positive effect on firm performance in the eastern coastal areas than they do in mid-west coastal areas, and there is a crowding-out effect on the mid-west coastal areas. Government subsidies have a greater positive effect on the performance of non-state-owned enterprises than they do on state-owned enterprises. Suggestions are provided for the government to adjust subsidy policy and improve the performance of new energy enterprises.

Keywords: new energy firm; government subsidy; R&D input; firm performance; firm heterogeneity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:17:p:4518-:d:259416

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