Financial Constraints,Income Tax Reform And Investment Efficiency Of Corporatess

In November 2015,China put forward the Supply-side reform,strive to improve the efficiency of the supply side.Enterprise is the main force of social supply,so the improvement of supply-side efficiency depends on the improvement of enterprise investment efficiency.The domestic research on the efficiency of enterprise investment mainly starts from corporate governance and ignores the friction of external credit market.To this end,this paper first explores the impact of financial constraints on corporate investment efficiency,and then shows the heterogeneity analysis based on property rights,regional financial development level and political relevance.On the basis of confirming that the financial constraints can significantly inhibit the investment efficiency of enterprises,this paper further explores how to alleviate the financial constraints.We introduce the income tax reform as a "natural experiment"to inspect the influence of tax-cut on corporate financing constraints and investment efficiency,and find out that the tax-cut can obviously alleviate the enterprise financing constraints,and then improve the investment efficiency of the enterprise.In the first part of this paper,we explain the research ideas based on the classification review.The second part is the research design of this paper,including five basic hypotheses,data screening and index measurement.In the third part,we use two-directional fixed effect model of panel data and the DID method to carry out the empirical study,confirming the five hypotheses proposed in this paper.The forth part summarizes the conclusion of this paper and makes policy recommendations.Accroding to our research,the financial constraints can significantly reduce the enterprise investment efficiency,and this inhibitory effect varies with the enterprise property rights,regional financial development level and political relevance.State-owned enterprises are more sensitive to the change of financial constraints when compared with private enterprises and the development of regional finance and the establishment of political connections are all effective approaches to reduce the restraining effect of financing constraint on enterprise investment efficiency.Finally,the introduction of enterprise income tax reform find out the fact that:the tax-cut can obviously alleviate the enterprise financing constraints,and then improve the investment efficiency of the enterprise.