Is the government’s direct subsidy to COVID-19 effective?
With the outbreak of COVID-19, governments worldwide have provided direct subsidies to enterprises. This paper aims to identify the motivation behind these subsidies and evaluate their impact. Previous studies have overlooked the discussion of subsidy motivation, and there is still a wide divergence...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-05-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023029146 |
| _version_ | 1797815658184966144 |
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| author | Xiaomin Zhou Ran Mei Leilei Song |
| author_facet | Xiaomin Zhou Ran Mei Leilei Song |
| author_sort | Xiaomin Zhou |
| collection | DOAJ |
| description | With the outbreak of COVID-19, governments worldwide have provided direct subsidies to enterprises. This paper aims to identify the motivation behind these subsidies and evaluate their impact. Previous studies have overlooked the discussion of subsidy motivation, and there is still a wide divergence of views among scholars on whether subsidies have a positive effect on firm performance. To test the hypothesis, a fixed effect model is adopted. The study examines 228 Chinese A-share listed companies and confirms that subsidies are primarily attributable to the severity of the pandemic. Moreover, subsidies have a significant positive effect on social performance, particularly for small-scale enterprises. Contrary to the belief that subsidies have a positive effect on firm performance, this study disproves this viewpoint. The research findings provide a theoretical basis for subsidy policy-making during pandemics and outline the boundaries of government intervention in society and the economy. |
| first_indexed | 2024-03-13T08:26:02Z |
| format | Article |
| id | doaj.art-b05629158e47416c9c513d458eb0f159 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-13T08:26:02Z |
| publishDate | 2023-05-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-b05629158e47416c9c513d458eb0f1592023-05-31T04:45:14ZengElsevierHeliyon2405-84402023-05-0195e15707Is the government’s direct subsidy to COVID-19 effective?Xiaomin Zhou0Ran Mei1Leilei Song2School of Economics & Management, Gannan Normal University, Ganzhou, ChinaUrban Development Research Center, Shanghai Urban Construction Vocational College, Shanghai, China; Corresponding author.Shenzhen Jingqi Investment Co., Ltd, Shenzhen, ChinaWith the outbreak of COVID-19, governments worldwide have provided direct subsidies to enterprises. This paper aims to identify the motivation behind these subsidies and evaluate their impact. Previous studies have overlooked the discussion of subsidy motivation, and there is still a wide divergence of views among scholars on whether subsidies have a positive effect on firm performance. To test the hypothesis, a fixed effect model is adopted. The study examines 228 Chinese A-share listed companies and confirms that subsidies are primarily attributable to the severity of the pandemic. Moreover, subsidies have a significant positive effect on social performance, particularly for small-scale enterprises. Contrary to the belief that subsidies have a positive effect on firm performance, this study disproves this viewpoint. The research findings provide a theoretical basis for subsidy policy-making during pandemics and outline the boundaries of government intervention in society and the economy.http://www.sciencedirect.com/science/article/pii/S2405844023029146COVID-19SubsidiesEffectiveGovernment intervention |
| spellingShingle | Xiaomin Zhou Ran Mei Leilei Song Is the government’s direct subsidy to COVID-19 effective? Heliyon COVID-19 Subsidies Effective Government intervention |
| title | Is the government’s direct subsidy to COVID-19 effective? |
| title_full | Is the government’s direct subsidy to COVID-19 effective? |
| title_fullStr | Is the government’s direct subsidy to COVID-19 effective? |
| title_full_unstemmed | Is the government’s direct subsidy to COVID-19 effective? |
| title_short | Is the government’s direct subsidy to COVID-19 effective? |
| title_sort | is the government s direct subsidy to covid 19 effective |
| topic | COVID-19 Subsidies Effective Government intervention |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023029146 |
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