Disincentive or Incentive? What Role Do Government Subsidies Play for High-Tech Companies in the New “Double-Cycle” Development Model?- The Moderating Role of the Internal Corporate Governance Mechanism
- DOI
- 10.2991/978-94-6463-142-5_74How to use a DOI?
- Keywords
- double-cycle; government subsidies; internal corporate governance mechanisms; corporate performance
- Abstract
During the “14th Five-Year Plan” period, some high-tech enterprises are facing many difficulties in foreign trades. How to break through the difficulties and find the right time to promote the positive development of high-tech technologies is the focus of building a “double-cycle” pattern, which is also a key point of the great concern for the Government. Although government subsidies are one of the important policies of the state to guide the innovative development of high-tech enterprises, there are different views on their influence on the financial performance of enterprises. In this paper, a panel of high-tech companies listed on A-shares from 2016 to 2020 is selected for empirical analyses using a fixed-effects model to explore the relationship among government subsidies, internal corporate governance mechanisms and corporate performance under the new “double-cycle” development pattern. The results show that government subsidies have a significant positive impact on the financial performance of high-tech enterprises. Using internal corporate governance mechanisms as the moderating variables, it was found through further tests that the relationship between the two was significantly negatively moderated through shareholding concentration while was significantly positively moderated through shareholding checks and balances. The relationship was significantly and positively moderated based on board size and executive compensation incentives. The findings of the study can provide recommendations in terms of both policy formulation, the improvement of internal governance mechanisms of enterprises and the rational use of government subsidies.
- Copyright
- © 2023 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Xinyu Tan AU - Yuxiao Xu AU - Su Chen PY - 2023 DA - 2023/05/15 TI - Disincentive or Incentive? What Role Do Government Subsidies Play for High-Tech Companies in the New “Double-Cycle” Development Model?- The Moderating Role of the Internal Corporate Governance Mechanism BT - Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023) PB - Atlantis Press SP - 671 EP - 682 SN - 2352-5428 UR - https://doi.org/10.2991/978-94-6463-142-5_74 DO - 10.2991/978-94-6463-142-5_74 ID - Tan2023 ER -