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In the Chinese mainland, government subsidies look like a delicious "pie" hunted by different cooperatives. In order to get more charge of it, however, some cooperatives used strategies distorting the cooperative's basic characters. These problems appeared also decline the capital usage efficiency of government subsidies in a certain extent. This paper uses transaction cost theory to explore the current situation and the cost/benefit existed in different cases. The authors believe that thedoi:10.5539/ijbm.v6n9p24 fatcat:rcmetgrixvclrjslm5xmgq3wja