Government subsidies, investment efficiency, and corporate strategic aggressiveness

Yiru Chen and Liying Li

Finance Research Letters, 2025, vol. 82, issue C

Abstract: This study takes Chinese A-share listed companies as the research object and empirically explores the impact of government subsidies on corporate strategic aggressiveness and its mechanism of action based on data from 2011 to 2023. The findings reveal that government subsidies have a significantly positive impact on corporate strategic aggressiveness, providing financial support for enterprises and helping them adopt more aggressive strategies. Investment efficiency plays a mediating role in the process by which government subsidies affect corporate strategic aggressiveness. Government subsidies influence investment decisions, which in turn affect investment efficiency, and ultimately impact corporate strategic aggressiveness. Corporate innovation exerts a positive moderating effect; the stronger the innovation capability, the greater the positive impact of government subsidies on corporate strategic aggressiveness.

Keywords: Government subsidies; Corporate strategic aggressiveness; Investment efficiency; Corporate innovation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325008943
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008943

DOI: 10.1016/j.frl.2025.107635

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().