The Effect Of Transnational Mergers And Acquisitions On Corporate Tax Burden Of Chinese Firms

At present,enterprises around the world have experienced six waves of large-scale cross-border mergers and acquisitions,and the rise of each wave of cross-border mergers and acquisitions has had an immeasurable impact on China's economy.In today's global economic integration is more and more mature,transnational merger and acquisition activity is not only the enterprise to realize scale expansion,improve enterprise productivity and competitiveness,one of the important ways to increase profits,and it is Chinese enterprises to the world,high quality trusted brand,creating a global success of the important ways to implement the strategy of "going out".The tax burden of enterprises is an important factor that must be carefully considered when enterprises make decisions on cross-border mergers and acquisitions.In the context of the current research literature,literature at home and abroad to the enterprise transnational merger and acquisition research mostly focused on the basic theory of transnational mergers and acquisitions,tax agent,tax environment,financial risk,financial effect,influence factors,political environment,and so on,but the enterprise how to influence on the enterprise tax burden of transnational merger and acquisition literature few and far between.On research methods at the same time,most of the domestic and foreign literature is theoretical research methods,or through case study analysis in the form of different ways of tax planning in enterprises transnational mergers and acquisitions,the application of such literature is often more through specification and examples,the method of combining but more focus on the normative research,cause the combination of theory and empirical system study enough.Therefore,the research content of this paper is of great theoretical significance in making up for the lack of literature on the impact of transnational mergers and acquisitions on corporate tax burden.In terms of research methods,this paper combines theoretical and empirical research methods to systematically study the research content.In terms of the research results,the conclusions and Suggestions based on the empirical analysis results are beneficial to the promotion of tax policies to guide Chinese enterprises to the world stage and the smooth implementation of "going out" strategy,which have certain policy significance.Based on the practice of Brandt et al.(2012),this paper obtained the cross-sectional data of 2013 and controlled the fixed effects of industries and provinces.The empirical results show that: first,the effect of transnational mergers and acquisitions on corporate tax burden reduction is significant;Second,the duration of cross-border mergers and acquisitions has no significant effect on the reduction of corporate tax burden.Thirdly,in the analysis of state-owned enterprises and non-state-owned enterprises,it is found that transnational mergers and acquisitions have different tax reduction effects on state-owned enterprises and non-state-owned enterprises.Specifically,compared with state-owned enterprises,transnational mergers and acquisitions have more significant tax reduction effects on non-state-owned enterprises.Policy recommendations: in order to reduce the enterprise in the process of "going out" face various obstacles and trade friction,policymakers should carefully from the law Angle,discuss the influences of enterprise tax burden to the enterprise of transnational m&a,on the one hand,the tax policy laws and regulations to better guide the enterprises to go out and promote the enterprises engaged in transnational merger and acquisition activity,accelerate the pace of Chinese companies to the world stage,through the leverage of the tax policy,help enterprises to realize the globalization strategy,improve the international competitiveness of our country enterprise;On the other hand,it is also necessary to consider the role of transnational mergers and acquisitions of enterprises in reducing the tax burden of enterprises,so as to avoid large-scale reduction of tax burden through transnational mergers and acquisitions,and formulate targeted tax policies to protect national tax revenue and safeguard national tax jurisdiction and tax sovereignty.