A Study On The Motivation And Effect Of Merger And Reorganization Of Central State-owned Enterprises

After May 1,2016,China fully implemented the policy of replacing business tax with value-added tax(VAT).Although manufacturing industry is not the most affected industry in the reform,as the pillar of China’s national economy,the tax reduction effect of the reform and the degree of its benefits have been widely concerned.After May 1,2018,in order to further improve the tax system,China implemented the deepening reform of VAT to simplify and reduce the VAT rate,which are expected to be beneficial to the further development of manufacturing industry.Under these backgrounds,this paper takes the manufacturing industry as the research object to explore the impact of VAT reform.First of all,based on the literature research method,this paper systematically sorts out the studies related to the theme of VAT reform and reducing the tax burden of VAT in recent years.After reviewing,it’s found that the existing literatures mainly focus on the industries that implemented the VAT reform earlier,and there are few studies focusing on manufacturing industry.In addition,existing studies mainly focus on the whole manufacturing industry,which may be too general.Therefore,from the perspective of industry heterogeneity,this paper divides manufacturing industry according to factor intensity,and the selected research perspective is innovative.Secondly,this paper uses the comparative analysis method to explore the impact of VAT reform on the VAT burden and financial indicators of the manufacturing industry.Based on the industry heterogeneity of manufacturing,this paper subdivides its sub-industries into three categories,labor-intensive,capital-intensive and technology-intensive,and analysis are conducted with the financial data from 2014 to 2017 and January-September 2018.The statistical results show that the tax reduction effect of VAT reform is obvious,and the burden of VAT and business tax of manufacturing enterprises has been reduced.From the perspective of sub-industries,the tax reduction effect to the technology-intensive manufacturing industry is the largest,and the capital-intensive and labor-intensive manufacturing industry has weaker responses to the reform.In terms of financial impact,the manufacturing enterprise’s solvency,profitability and operation ability have improved after the reform.According to the sub-industries,the trend of financial indicators of labor-intensive and capital-intensive enterprises is roughly the same as that of the whole industry,and the change range is larger.The response of technology-intensive enterprises is the least obvious.After the deepening reform,all three indicators of listed manufacturing enterprises have declined.Finally,this paper uses the case analysis method to analyzes the impact of VAT reform on Great Wall Motor’s VAT burden,financial status and business structure.Through analysis,it’s found that the VAT burden rate of the case enterprise has continuously decreased after the reform,and affected by its marketing and researching strategy,the case enterprise’sdebt paying ability,profitability and operating ability have also decreased.In addition,from the perspective of enterprise heterogeneity,based on the supply chain and actual operation of the case enterprise,this paper designs a VAT reduction path from three aspects,production factors,intelligence level and business ecological heterogeneity,in order to effectively reduce the burden on enterprises,and to provide new ideas for all manufacturing enterprises to achieve maximum after-tax benefits in the context of reform,which is timely and forward-looking.