Decision Sciences
4 years ago

Government Subsidies Boost Profits for Agricultural Firms, Transforming Rural Economies

Advances in economics, business and management research/Advances in Economics, Business and Management Research
An Empirical Study on the Impact of Government Subsidies on the Financial Performance of Agricultural Listed Companies
Minping Qian, Keying Han

Paper Summary

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Government subsidies can positively impact the financial performance of agricultural listed companies. By studying data from 2015 to 2019, it was found that these subsidies can improve current financial performance and help companies catch up if they are lagging behind. However, subsidies related to income can have a negative effect, while those related to assets have a positive impact. This suggests that optimizing government subsidies can benefit agricultural companies financially.