eng Science and Education Publishing Journal of Finance and Accounting 2333-8857 2020-12-09 8 1 16 22 10.12691/jfa-8-1-3 JFA2020813 article Yazhu Feng xiaoyezifyz@126.com 1 Siyu Zhai 1 School of Economics and Management, Shanxi University, Taiyuan, China Based on the data of China's GEM companies from 2015 to 2017, this paper uses linear regression analysis model to verify the relationship among government subsidies, R&D investment and business performance. The results show that government subsidies have no significant impact on business performance, but when the intensity of government subsidies increases, the R & D investment of GEM enterprises also increases significantly. On this basis, we also concluded that the existence of R & D investment makes the government subsidies to be positively correlated with the business performance. Therefore, there is a mediating effect of R & D investment between government subsidies and business performance. http://pubs.sciepub.com/jfa/8/1/3/jfa-8-1-3.pdf government subsidies R & D investment business performance mediating effect