JOURNAL OF MANAGEMENT POLICY AND PRACTICE
More Government Subsidies, Worse Future Earnings-Evidence from China
Author(s): Yan Feng, Liudi Song
Citation: Yan Feng, Liudi Song, (2020) "More Government Subsidies, Worse Future Earnings-Evidence from China," Journal of Management Policy and Practice, Vol. 21, Iss. 1, pp. 71-91
Article Type: Research paper
Publisher: North American Business Press
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.