Macro Tax Burden And Capital Structure Of Enterprises

Tax and capital structure of enterprises have been widely concerned,but there are endogenous or incomplete information in the study of the relationship between tax burden and capital structure.This paper takes prefecture-level cities as the macro-region,calculates the actual tax rate of income tax and the actual tax rate of value-added tax by adding up the enterprise-level data to study the possible impact on the capital structure of enterprises,which can not only solve the endogenous problem but also contain all the tax rate changes during the period.At the same time,we use the individual enterprise level data in the industrial enterprise database to make an empirical analysis,which avoids the problems that the listed companies will set up branches in different areas and the statements are not distinguished,and the enterprises may not pay taxes in their locations.Based on the data in the industrial enterprise database from 1998 to 2007,this paper makes use of the cluster robust criterion to make a panel regression analysis.The results show that:firstly,because of the role of the debt tax shield,the increase of the actual tax rate of income tax will make the enterprise increase the asset-liability ratio correspondingly,and at the same time because of its lag.The effect of post-effect will also increase the debt level of enterprises in the next year;secondly,because the production-based value-added tax can not be deducted,enterprises will have greater demand for capital,the increase of the actual tax rate of value-added tax will enable enterprises to choose a higher asset-liability ratio,but also affect the next year’s asset-liability ratio,so that enterprises next year.The annual debt level has been raised,and through the heterogeneity test,it is found that the effect of the actual tax rate of income tax and VAT on the asset-liability ratio is greater in non-state-owned enterprises than in state-owned enterprises,and there is no significant difference between domestic enterprises and foreign enterprises.Based on the above conclusions,combined with the state issued a positive and stable view to reduce enterprise leverage,the corresponding policy recommendations:the government can reduce the local actual tax burden through a more relaxed tax collection at the same time,but also need to increase investment in the western region,improve the tax burden differences between the central and Western regions.