Abstract:Using data of Chinese listed firms from 2005 to 2014, this paper studied the impact of corporate investment allocations on economic growth quality under government subsidies policy. Empirical results show that,firstly,new corporate fixed-asset investments were negatively related to regional economic growth quality, while equity investments cannot promote economic growth quality; however,technology investments had significantly positive effect on high-quality economic growth. Secondly,compared with central state-owned enterprises ( SOEs) and private enterprises,fixed-assets investments and equity investments at local SOEs had larger adverse impacts on economic growth quality,especially those with excessive government subsidies. Thirdly, only appropriate levels of government subsidies can best stimulate the promotion of corporate technology investment to economic growth quality. When the government subsidies was too high,technological investments in local SOEs had no significant positive effect on economic growth quality. Fourthly,regional marketization levels can not only strengthen the promoting effect of corporate technology investments on economic growth quali- ty,but also weaken the negative impact of fixed-asset investments and equity investments of local SOEs on economic growth quality. These results are helpful to understand reasons behind poor quality of economic growth caused by corporate capital investments from the perspective of government governance.