More Government Subsidies, Worse Future Earnings-Evidence from China

Authors

  • Yan Feng Tsinghua University
  • Liudi Song Tsinghua University

DOI:

https://doi.org/10.33423/jmpp.v21i1.2825

Keywords:

Management Policy and Practice, government subsidy, future earnings, Necessity, China

Abstract

This paper examines the relationship between government subsidies and future earning. Firms are more likely to achieve worse future earnings when they received more subsidies. Subsidies with lower necessity will worsen future earnings. Whichever measures we use, the more subsidies will lead to a worse future performance.

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Published

2020-07-22

How to Cite

Feng, Y., & Song, L. (2020). More Government Subsidies, Worse Future Earnings-Evidence from China. Journal of Management Policy and Practice, 21(1). https://doi.org/10.33423/jmpp.v21i1.2825

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Section

Articles