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Government subsidies, investment efficiency, and corporate strategic aggressiveness

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  • Chen, Yiru
  • Li, Liying

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.

Suggested Citation

  • Chen, Yiru & Li, Liying, 2025. "Government subsidies, investment efficiency, and corporate strategic aggressiveness," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008943
    DOI: 10.1016/j.frl.2025.107635
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    References listed on IDEAS

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