Improving Investment Efficiency in Enterprises: An Analysis of the Impact of Government Subsidies and Marketization Level

DOI

10.2991/978-94-6463-268-2_50How to use a DOI?

Keywords

government subsidies; Investment redundancy; under-investment

Abstract

This paper examines the effect of government subsidies and the level of marketization on investment efficiency in Chinese A-share manufacturing companies that are listed on the Shanghai and Shenzhen stock exchanges from 2012 to 2022. Using panel data analysis, we investigate the underlying mechanism of these relationships. The findings reveal that when listed companies experience inefficient investment, government subsidies exacerbate overinvestment and enhance investment efficiency. However, for companies facing underinvestment, government subsidies bridge the capital gap but reduce investment efficiency. Moreover, regions with higher levels of marketization exhibit lower dependency on government subsidies and experience fewer instances of inefficient investment.

Copyright

© 2024 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.

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TY  - CONF
AU  - Xiran Cui
AU  - Lu Li
PY  - 2023
DA  - 2023/10/10
TI  - Improving Investment Efficiency in Enterprises: An Analysis of the Impact of Government Subsidies and Marketization Level
BT  - Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)
PB  - Atlantis Press
SP  - 453
EP  - 460
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-268-2_50
DO  - 10.2991/978-94-6463-268-2_50
ID  - Cui2023
ER  -