The Impact of Government Subsidies and R&D Investment on the Operating Performance of New Energy Enterprises in China

This paper selects the data of listed companies of new energy enterprises in China from 2017 to 2021 for empirical analysis to explore the impact of government subsidies and R&D (research and development) investment on operating performance using the panel data fixed effects model. The results show that in new energy enterprises, R&D investment and government subsidies are positively correlated with operating performance. When R&D investment and government subsidies exist at the same time, the interaction effect triggered by the two will play a positive moderating effect on business performance, but the promotion effect of both on business performance is weakened; at this time, the government subsidies have a better promotion effect on business performance. Based on the above findings, this paper puts forward the following suggestions: the government and related departments should optimize the subsidy mode of new energy enterprises, reduce direct subsidies, and adopt indirect subsidy policies such as tax incentives, to avoid excessive dependence on direct subsidies.