Empirical Study On The Impact Of Corporate Income Tax On Capital Structure

The twelfth meeting of the Central Financial and Economic Leading Group identified a supply-side structural reform program,and the adjustment of the corporate capital structure involved the realization of the “deleveraging” goal in the reform plan.The rational use of tax policies is conducive to promoting supply-side structural reforms and achieving the goal of “deleveraging”.Theoretically,corporate income tax incentives corporate to debt financing,that is,corporate income tax will affect the capital structure.But in reality,whether corporate income tax effectively affects the capital structure requires empirical testing.Based on the theoretical analysis and the panel data of listed companies in China's A-share market,this paper empirically tests the impact of corporate income tax on capital structure.This paper consists of four parts: firstly,it theoretically analyzes how corporate income tax affects capital structure,and mainly analyzes the mechanism of how corporate income tax affects capital structure.Secondly,teasing the corporate income tax policies relating to capital structure,calculating the actual corporate income tax burden and the present situation of capital structure of the A-share market listed companies from different perspectives to provide empirical data support for empirical analysis,and also lay the foundation for the subsequent analysis of corporate income tax in the optimization of capital structure.Thirdly,empirical analysis of the impact of corporate income tax on capital structure.In order to better investigate the impact of corporate income tax on capital structure,based on the construction of dynamic panel data model,this paper empirically analyzes the impact of corporate income tax on capital structure from different perspectives by using the panel data of A-share listed companies from 2010 to 2017.The empirical results show that the corporate income tax has different impacts on the capital structure from different perspectives: from the overall perspective,the actual tax burden of the corporate income tax of the listed companies in the A-share market inhibits the companies from the debt financing;from the perspective of different ownership companies,corporate income tax has different effects on the capital structure of different ownership listed companies.The actual tax burden of corporate income tax has a significant impact on the capital structure of state-owned listed companies,but it is not conducive to the optimization of its capital structure.The actual tax burden of corporate income tax is conducive to optimizing the capital structure of non-state-owned listed companies;the actual tax burden of corporate income tax on listed companies in the real estate industry has a negative effect on the debt financing,while the actual tax burden of corporate income tax on high-tech listed companies has a weaker impact on the capital structure.Finally,according to the status quo of corporate income tax and capital structure,as well as the empirical results of the impact of corporate income tax on capital structure,this paper summarizes the existing problems of corporate income tax in China.In order to optimize China's capital structure and better promote the supply-side structural reform,this paper puts forward some policy suggestions on optimizing the corporate income tax.