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

摘要

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.