Research on the Impact of Fiscal Subsidies on High-Quality Development of New Energy Vehicle Companies Based on Threshold Effects

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Abstract
In recent years, China has made significant strides in developing the new energy vehicle industry, providing substantial financialsupport to this sector. The production and sales of new energy vehicles have experienced explosive growth, accompanied by notable improvements in technology and product quality. However, as the industry evolved, the effectiveness of financial subsidies in enhancing the production and technological capabilities of enterprises has gradually diminished. To foster the rapid development of new energy vehicle enterprises and facilitate the rational planning of relevant government financial subsidies, this study utilizes data from listed Chinese new energy vehicle companies spanning from 2017 to 2022 to investigate the intrinsic relationship between financial subsidies and the quality development of enterprises. The study reveals several key findings. First, when fiscal subsidies are maintained within a reasonable range, they significantly enhance the quality development of state-owned enterprises (SOEs). However, once this threshold is surpassed, further increases in fiscal subsidies do not promote quality development of enterprises, a phenomenon that does not apply to non-state enterprises. Second, the threshold effect of financial subsidies on quality development is particularly pronounced between newly listed companies and those listed for more than three years. Third, for SOEs, financial subsidies play a critical role in fostering high-quality development by boosting R&D investment; this relationship is not observed in non-SOEs. Consequently, this study advocates the establishment of differentiated financial support policies for the new energy vehicle industry to maximize their effectiveness. Received: 24 July 2024 | Revised: 21 November 2024 | Accepted: 24 December 2024 Conflicts of Interest The authors declare that they have no conflicts of interest to this work. Data Availability Statement The data that support the findings of this study are openly available in [Wind] at https://www.wind.com.cn/portal/zh/WFT/ index.html Author Contribution Statement Leyan Zuo: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Data curation, Writing – original draft, Writing – review & editing, Visualization, Project administration. Songlan Zhou: Funding acquisition. Mengxin Wang: Conceptualization, Methodology, Software, Resources, Data curation, Writing – review & editing, Supervision, Project administration. Siyu Zhang: Methodology, Software, Validation.

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