An Empirical Study On The Influence Of "Replacing Business Tax With Value-added Tax"reform On Service Enterprise Financing Constraints

"Replacing business tax with value-added tax" is an important tax reform during the period of the twelfth Five-year plan."Replacing business tax with value-added tax" is another new initiativeto increase the structural tax reduction.On macro basis,"Replacing business tax with value-added tax "revitalizes the corporate cash flow,and reduces the corporate tax burden,thus affects the production and operation of enterprises.As an important part of financial management,financing constraints directly affect the production,investment,financing and other business activities.The study of the influence of "Replacing business tax with value-added tax" on corporate financing constraints can provide a reference for the tax revenue to play an important role in the process of China’s economic restructuring.The purpose of "Replacing business tax with value-added tax" is to eliminate duplication of Taxation,to ensure fair tax,to reduce the actual tax burden of enterprises."Replacing business tax with VAT " for the service industry to open up,extend and lengthen the VAT deduction chain,increase the operating cash flowand promote the healthy development of enterprises.In recent years,the problem of financing is the bottleneck that restricts the development of many enterprises.Solving the problem of financing is an important direction of the development strategy of our country.Tax reform is a major move.At present,our country is in the transition period of economic system,because the market is not perfect,the problem of information asymmetry between capital supply and demand sides.The existence of agency cost increase the cost of external financing.Difference of the internal and external financing cost is very significant.Many enterprises face high and seriousextemal financing constraints.Some enterprises even go bankruptcy.Now,study on the impact of value-added tax is mainly focused on the change of tax system on the industry overall tax burden and economic operation results in the macro perspective,from the perspective of the relatively small,especially the financing constraints and investment is closely related but rarely involved.Tax is associated with two main economic bodies of government and enterprise.The tax policy also affects and adjusts the behavior choice and economic consequence between the two stakeholders.When the research in attention to tax as a macroeconomic policyas the government in the distribution of total macroeconomic regulation of economic means caused by the change,the process should also pay attention to the amount of change is actually the operating results of the change from the micro economic individual.Therefore,from the perspective of tax reform,research on the influence of China’s current round of "Replacing business tax with value-added tax(VAT)"of financing constraints,the evaluation of the implementation of’Replacing business tax with value-added tax(VAT)"policy can help enterprises to grasp the opportunity to make good use of the tax reform andadjust the financing strategy.Tax reform policy has important practical significance.The gradual extension of "Replacing business tax with value-added tax(VAT)"reform is equivalent to a "naturalexperiment".This paper analyzes and evaluates the effect of policy implementation.This paper adopts Difference-in-Difference Model based on the cash flow sensitivity of cashperspective,studied the effect of the policy of financing constraints.The paper first uses the "replacing business tax with value-added tax(VAT)" as the research background,its impact on the financing constraints of the relevant industries as a starting point,analysesof the significance of the study,the construction of research ideas and methods,summed up the expected value of this article.Secondly,through the literature review at home and abroad,the current study on impact of financing constraints and tax on corporate finance,and related theories are analyzed.Then,the paper use the panel data of 493pilot industrylisted companies in 2010-2016 as the sample.The paper studies the influence of the change of business growth on the financing constraints by using the Difference-in-Difference model.The empirical results support the theoretical analysis.The study found that with the implementation of "Replacing business tax with value-added tax(VAT)",the financing constraints of enterprises gradually eased,and the impact on the financing constraints of enterprises more significant;The better the financial background of the executives,the more significantly the effect of corporate finance constraints eased;And the role of non state owned enterprises to ease the financing constraints stronger than state-owned enterprises.Finally,the paper puts forward policy recommendations and research prospect.The innovation of this paper may lie in the following two aspects:First,In this paper,on the basis of existing literature,starting from the effect of"Replacingbusiness tax with value-added tax(VAT)" tax reform on financing constraints,studies the influence of the change of tax system of enterprise finance financing constraints,further into the enterprise financing constraints condition,enterprise property right characteristic and financial background factors,studies whether the" Replacing business tax with value-added tax(VAT)"policy easesenterprise financing constraints.The policy uses pilot to promotion reform model,so this paper uses the double difference model for effect analysis and policy evaluation.This paper adopts Difference-in-Difference model to study how national macroeconomic policy influences the micro enterprises,the implementation of the evaluation of public policy effect attempts to expand the research breadth of tax reform,the research enriches the cash management of the micro and macro business tax policy related.Secondly,on the basis of the theoretical research combined with the actual situation of "replacing business tax with value-added tax(VAT)" A shares of listed companies,the application of tax data before and after the empirical analysis,to improve the internal governance,have certain enlightenment to push to promote market-oriented process,and puts forward some new proposals for the introduction of enterprises and the countermeasures.