LAUSR

Abstract Owing to the advantages of resources conservation and environmental improvement, the new energy industry has become a strategic emerging industry all over the world, and the majority of countries have formulated different kinds of subsidies policies to new energy enterprises. Therefore, environmental effects and price subsidies become important influencing factors on financial performance. Based on 185 samples from 37 new energy listed companies in China from 2011 to 2015, combining with the sequential regression test program, the current study systematically discusses the relationship between environmental effect and financial performance, as well as the mediating effect of price subsidy. The result shows that, the environmental effects have a significant positive impact on the financial performance in the current and the lag period. Meanwhile, price subsidy implemented by government improved the financial performance in the current and the lagging period, while it only positively impacts the lagging period environmental effect. Besides, both current and the lagging period of price subsidy plays a significant positive mediating effect role in the relationship between environmental effect and financial performance. Moreover, the marketing degree and enterprises' age stimulate the mediating effect of price subsidy, while the enterprises' size and owners’ equity characteristics inhibit the mediating effect.