An Empirical Analysis of the Influence of Regional Subsidy on Enterprise Value


Based on the local listed companies in pharmaceutical industry as samples, this article inspects the influence of regional subsidies on the industries and the companies in it. The results show that the regional subsidies have no positive effects on the cross-regional enterprises whereas the support promotes the value of local enterprises. Guided by the composition of the market value, this article researches the reasons from the perspective of profit and development capacity. This article finds that the regional subsidies have no intensive strength to the R & D (Research and Development) capacity in the cross-regional enterprises and the relationship between the regional subsidies and the operating profits behaves completely different among cross-regional enterprises and local enterprises. Based on the empirical analysis, this article concludes that the effects of regional subsidies behave completely different among the cross-regional enterprises and the local enterprises, which can be explained by the short-time and long-time analysis.

Share and Cite:

Qiao, Y. (2015) An Empirical Analysis of the Influence of Regional Subsidy on Enterprise Value. American Journal of Industrial and Business Management, 5, 480-485. doi: 10.4236/ajibm.2015.57048.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Zhou, H. and Lu, J.Q. (2012) The Regional Subsidies Affect Research and Development to Create Enterprise Value. Proceedings of the Special Symposium Committee Professional Basic Theory of Accounting in 2012 Chinese Accounting Association, Southwestern University of Finance and Economics, Chengdu, 4-82.
[2] Lu, D., Lin, G. and Yang, D. (2012) The Regional Subsidies, Spending on Research and Development and Market Value—Empirical Evidence from the Gem of High-Tech Enterprises. 9th Edition, Investment Research, 67-81.
[3] Jiang, Y. and Tian, K.R. (2013) Cross-Regional Listing Corporation Internal Features Regional Grants and Accounting Conservatism. Commerce College in Tianjin University of Finance and Economics, Research on Auditing and Economic. 1st Edition, 77-86
[4] Xu, G., Zhu, W.D. and Zhang, Z.Y. (2012) Corporate Rent-Seeking and Local Government Subsidies-Empirical Evidence from China’s Capital Market. 3rd Edition, Journal of Finance and Economics, 65-77.
[5] Liu, Y.L., Zhang, M.D. and Ma, X.Y. (2010) The Influence of Local Government Subsidies to the Real Estate Listed Company Performance. The Accounting Issue, 12, 51-54.
[6] Chen, X. and Li, J. (2001) The Research on the Role of Financial Behavior of Local Subsidy in Promoting Listed Companies Performance. Accounting Research, 12, 20-29.
[7] Jiang, E.P. (2013) the Research on Local Government Subsidies and the Listed Company Earnings Management. 14th Edition, Business Accounting, 106-108.
[8] Chen, Y.S. and Zhu, S. (2009) Political Relations, System Environment and the Capital Investment of Listed Companies. 12th Edition, Journal of Study on Finance and Economics, 27-39.
[9] Sun, W.Z. and Dao, G.S. (2012) Research on the impact of ownership structure on Corporate Performance. 20th Edition, Economic Problems, 20-28.
[10] Zhou, Q.Y. and Zhou, C.Q. (2005) The Impact of Non-Recurring Profit and Loss on the Financial Results of Listed Companies in the Shanghai Market Research. 1st Edition, Journal of Shanghai Lixin University of Commerce, 1-8.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.