| China's economic growth is slowing,under the new norm the CPC put forward supply-side structural reform in order to improve the quality of supply and promote structural adjustment.By means of correcting factor allocation distortion and promoting the sustainablity of economic development,it can change the demand and supply structure flexibility and improve total factor productivity in order to better meet the needs of people.Among the policy tools of supply-side reform,tax reduction is one of the main means.Tax reduction can reduce the burden on the supply side,release the vitality of the supply side and finally improve the supply capacity.The improvement of enterprises' supply capacity is mainly reflected in the increase of investment level.Under the background of tax reduction and fee reduction reform,what is the mechanism of tax reduction and investment? What will be the effect on investment? Is there any heterogeneity among different investment subjects? This paper intends to study the impact on investment from the perspective of tax reduction,hoping to put forward suggestions on optimizing tax reduction policy through empirical study.The tax will raise the cost of using capital and suppress the demand of enterprises for capital.After the tax reduction,the user cost of capital will decrease,the investment cost of enterprises will decrease and the investment of enterprises will increase.This paper first calculates the user cost of capital of Chinese listed enterprises and then establishes an empirical model to verify the impact of tax reduction on the investment scale of enterprises.On this basis,we further examine the impact of tax cuts on the scale of investment of enterprises due to the heterogeneity of different investment entities,including the heterogeneity due to the different ownership of the investment entities and the heterogeneity due to different risks faced by investment entities.In the report to the 19 th CPC,President Xi Jinping proposed to take supply-side structural reform as the main task and promote quality and efficiency reform of economy.Under the new normal state,tapping new kinetic energy for economic growth at a deeper level requires tapping from efficiency(Li Yan and Yang Rudai,2018),tapping from innovation(Ye Jianliang et al.,2019),tapping from location(Tongjiadong,2017),so how tax reduction affecting the investment efficiency of enterprises,R & D investment and investment location are three extremely important issues.First,the realization of the supply-side reform goals requires optimizing investment efficiency--there is an optimal level of investment for any enterprise to maximize the value of the enterprise,but in reality there is often a difference between the investment level of the enterprise and the optimal level,and there is excessive or insufficient investment.Thereby improving the investment efficiency of the enterprise is the inevitable requirements for maximizing the production value of the enterprise and optimizing the allocation of resources.Tax reduction can reduce the distortion of resource allocation caused by tax and thus have an impact on the investment efficiency of enterprises.This paper makes an in-depth analysis of the effect and mechanism of tax reduction on the investment efficiency of enterprises through empirical methods.Second,the transformation of China's economic growth from high-speed growth to high-quality growth cannot be achieved without enterprises increasing R & D investment and engaging in innovation activities.To accelerate the construction of a modern industrial system which is "innovation-led and highly competitive" is the key to achieving high-quality development.Research and development investment is an important resource to ensure the successful realization of innovation-driven strategy,and tax incentives can effectively stimulate enterprises to increase R & D investment and increase innovation.Third,China's economy is facing the pressure of overcapacity and industrial upgrading as it enters the "third phase of superposition".Economic adjustment should focus on both internal and external opportunities,and should be solved by international forces,especially international investment.At present,there are few researches on the impact of tax reduction on enterprise investment location in China,not to mention how tax reduction plays its role in promoting enterprises to invest in countries along the belt and road and how tax reduction interacts with the "One Belt And One Road" initiative.Finally,this paper discusses the impact of tax reduction on enterprise investment location.The conclusions of this paper mainly include the following five points: first,tax reduction has a significant positive impact on the expansion of enterprise investment scale.Second,the impact of tax reduction on enterprise investment scale is heterogeneous due to different investment subjects.Specifically,the tax cut has a significant impact on the investment of state-owned enterprises but not on the investment of private enterprises.Tax cuts have a significant impact on investment in low-risk enterprises but not on investment in high-risk entrepreneurial enterprises.Third,the tax reduction has a significant impact on the investment efficiency of enterprises,which can not only restrain the over-investment of enterprises but also improve the under-investment of enterprises.Fourth,tax reduction has an obvious effect on R & D investment of enterprises.No matter whether the statutory tax rate of enterprises is reduced or the actual tax rate is reduced,the R & D investment intensity of enterprises increases significantly.Fifth,tax reduction has a positive impact on the location choice of enterprises' outbound investment.By enhancing the strength of Chinese enterprises in competing for investment targets in host countries,tax reduction has promoted the increase of Chinese enterprises' OFDI.In particular,the proposal of the "One Belt And One Road" initiative further promotes enterprises to invest in countries along the belt and road.The tax reduction and the "One Belt And One Road" initiative have obvious complementary effects.This paper consists of eight chapters,each of which is arranged as follows:The first chapter introduces the background,the definition of tax reduction,user cost of capital and investment,relevant literature review,research methods and technical route,innovation and shortage,etc.The second chapter sorts out the relevant theories of tax cut affecting enterprise investment.This chapter firstly introduces the development context of the theory of the relationship between tax reduction and enterprise investment,briefly summarizes the main viewpoints of various schools,and reviews the development path of supply-side economics from "Say's law" to "Keynesianism" to "Supply-side" theory(Jia kang,2015).Secondly,the neoclassical investment model is used to deduce and deduce the theoretical mechanism of tax reduction affecting enterprise investment.The neoclassical investment model takes the enterprise itself as the supplier of capital,and from this point,the investment behavior of the enterprise is theoretically analyzed.Finally summarizes and analyzes the tax cut effect on enterprise investment theory.The third chapter analyzes the mechanism of tax reduction affecting enterprise investment and tests it with the data of Chinese listed enterprises.First of all,the paper introduces the institutional background of the research.By reviewing and sorting out the major tax reduction policies from 1993 to 2016,it directly presents the specific measures and provisions of China's tax reduction policies.This part details the history of tax reduction in China,and clarifies the specific types of tax paid by enterprises and the level of tax rate,laying a foundation for later calculation and empirical analysis Secondly,the influence mechanism of tax reduction on enterprise investment is analyzed.Tax increases the user cost of capital and thus inhibits enterprise investment.Tax reduction can effectively reduce thethe user cost of capital and stimulate the expansion of enterprises' investment scale.This chapter uses the data of listed enterprises from2000 to 2016 to calculate the user cost of capital of Chinese enterprises and empirically test the investment scale of enterprises.The fourth chapter analyzes the impact of tax cuts on enterprise investment due to the existence of heterogeneity of different investors,including two dimensions of analysis: the difference of enterprise ownership,and the different degrees of risk faced by enterprises.Firstly,the problem of capital mismatch between state-owned enterprises and private enterprises has existed for a long time in China.Whether tax cuts have improved investment in state-owned and private enterprises,this chapter analyzes this by using the user cost of capital as an explanatory variable to conduct an empirical analysis of the investment scale of state-owned enterprises and private enterprises.Secondly,entrepreneurial enterprises are new drivers and engines of economic development,but facing high risks,government support is needed.Whether tax reduction can guide capital to favor entrepreneurial enterprises is an urgent question to be answered.This chapter analyzes by empirical method.Next,this paper studies the impact of tax reduction on enterprise investment efficiency,R & D investment and investment location.Chapter five studies the effect of tax reduction on enterprise investment efficiency.China's economy has been driven by investment for more than 30 years.However,after entering the new normal,excessive investment and low efficiency have become increasingly prominent.Chapter five analyzes whether tax reduction can help improve the investment efficiency of enterprises and guide the balanced allocation of capital among different enterprises from two perspectives: first,the relationship between tax burden and investment efficiency of enterprises is studied by using the fixed panel model,and the mechanism of tax reduction affecting the investment efficiency of enterprises is discussed.Secondly,a double differential model is used to direct analyze the impact of "VAT reform" on corporate investment efficiency.Chapter six studies the impact of tax reduction on enterprise R & D investment.Technological innovation is playing an increasingly important role in China's economic development,and enterprise R & D investment has become a key factor affecting the high-quality growth of technology and economy.It is important to pay attention to whether tax reduction can guide enterprises to allocate capital to the R & D capital.This chapter uses two indicators to measure tax reduction: one is the statutory tax rate of corporate income tax,the other is the effective tax rate of enterprises,that is,the ratio of tax payable to the operating income,to study whether tax reduction can stimulate enterprises to increase their investment in R & D by empirical method.In addition,the effects of tax reduction on R & D investment of state-owned and private enterprises are tested respectively to identify which tax reduction method is more effective for R & D investment of state-owned and private enterprises.Chapter seven studies the effect of tax reduction on enterprise investment location.This chapter first studies whether foreign direct investment(FDI)is sensitive to tax reduction in a country in the context of global tax competition.This chapter proves the effect of tax reduction on attracting foreign direct investment(FDI)by using data from 157 countries in the world.Secondly,in recent years,China's foreign direct investment(OFDI)has been growing rapidly.Tax cuts in the home country have an effect on the international competitiveness of enterprises by affecting their investment costs and returns.Tax competitiveness can be transformed into enterprise competitiveness,so as to enhance the ability and motivation of enterprises to go global.This chapter uses the OFDI data of Chinese companies to empirically test the relationship between China's tax reduction and foreign direct investment of enterprises.Furthermore,through heterogeneity analysis,it is found that if the enterprise's foreign investment is motivated to obtain resources or share the "Belt and Road",tax cuts have a more significant effect on foreign direct investment of enterprises.Chapter eight is the summary and policy suggestions,which reviews all the calculation and empirical results,and puts forward policy suggestions for improvement,aiming at the existing problems of China's current tax reduction policy on enterprise investment activities. |
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