关键词: 产品市场竞争, 财政补贴, 资本配置效率, 正U型关系

Abstract: Taking the Shanghai and Shenzhen A-share listed companies in China as a sample, this paper empirically examines the interactive effect of the government financial subsidy and the product market competition on the capital allocation efficiency. The results of the study are as follows: (1) There is a significant positive U-shaped relationship between the degree of financial subsidies and the level of the capital allocation efficiency. With the increase in the degree of financial subsidies, the level of the capital allocation efficiency firstly declines, and then shows a rising trend after the turning point. (2) There exists a positive interactive effect of government financial subsidies and the product market competition on the capital allocation efficiency. With the increase in the degree of financial subsidies, the level of the capital allocation efficiency becomes lower, but the negative relationship will be weakened as the degree of company's product market monopoly increases. The higher the degree of company's product market monopoly, the lower the level of its capital allocation efficiency. But the negative relationship will be weakened as the degree of financial subsidies increases. (3) Further researches find that the interactive effect mentioned above mainly affects the over-allocation of capital, and it shows no significant effect on the under-allocation of capital. This paper extends the researches on the relationship between government financial subsidies and the capital allocation efficiency, enriches relevant literature on the economic consequences of financial subsidies, which will have better enlightenment on the implementation of differentiated financial subsidies and industrial policy guidance so as to improve the social capital allocation efficiency.

Key words: Product Market Competition, Government Subsidy, Capital Allocation Efficiency, Positive U-shaped Relationship