This paper selects the listed companies in the manufacturing stage from the 10th to the 12th Five-Year Plan as the research object, and discusses the impact of government subsidies on the investment efficiency of enterprises based on the perspective of environmental regulation. Studies have shown that environmental regulation will reduce the efficiency of corporate investment, but when companies face more stringent environmental regulation goals, government subsidies will provide a strong support to avoid excessive investment or under-investment, and improve corporate investment efficiency. Throughout the "10th Five-Year Plan" period, government subsidies did not play an active role. Further research has found that government subsidies have a significant inhibitory effect on excessive investment compared to non-state-owned enterprises in the face of environmental regulations. However, regardless of the nature of the enterprise, government subsidies can help to reduce the degree of investment in enterprises. It shows that the mechanism of government subsidies affecting investment efficiency for enterprises with different property rights is not completely consistent.

Mengyao Wang, Xiaohong Wang. Research on the Impact of Environmental Regulation and Government Subsidy on Investment Efficiency of Listed Companies in Manufacturing Industry. Academic Journal of Business & Management (2019) Vol. 1: 80-98. https://doi.org/10.25236/AJBM.190112.

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