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

Author

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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)

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.

Suggested Citation

  • Manzhi Liu & Liyuan Liu & Shichun Xu & Mingwei Du & Xianxian Liu & Yanqin Zhang, 2019. "The Influences of Government Subsidies on Performance of New Energy Firms: A Firm Heterogeneity Perspective," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:17:p:4518-:d:259416
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