Does the Supervision Mechanism Promote the Incentive Effects of Government Innovation Support on the R&D Input of Agricultural Enterprises?

The stimulating issues of government innovation support to the market players' R&D vitality has always been the focus of innovation. This article analyzes the impact of government innovation support's two policies, namely, government subsidies and tax & fee returns, on the R&D input of agricultural enterprises from the perspective of government intervention. Moreover, this article is primarily focusing on the institutional investors, leading shareholders, and social audit institutions in the corporate governance to play a role in the improvement of shareholding and audit supervision mechanism. This article conducts unbalanced panel data regression tests based on the relevant data of government innovation support of A-share agricultural enterprises listed in Shanghai and Shenzhen from 2009 to 2019. The conclusions are as follows: Firstly, government subsidies have a significant crowding-out effect on R&D investment of agricultural enterprises, while tax & fee returns have a significant stimulating effect. Secondly, when the shareholding ratio of institutional investors and leading shareholders increases, the shareholding supervision mechanism strengthens the effect of government innovation support on enterprise R&D input. Finally, with the improvement of social audit institutions' auditing opinions, the enhancement of auditing supervision mechanisms has weakened the effect of government innovation support on enterprise innovation investment. These research findings can provide some academic supports and policy references for formulating appropriate government innovation support and giving full play to the role of shareholding supervision and audit supervision in corporate governance.