Research On The Effect Of Tax Preference On The Overcapacity Of Manufacturing Enterprises

When it comes to economic situation in the new era,“capacity reduction,de-stocking,deleveraging,cost reduction and improving underdeveloped areas” are five main tasks of China's supply-side structural reform.As the center of five tasks,deleveraging plays an important role in transforming China's economic structure and achieving high-quality development.Based on 2014 experiment of policy about accelerating the depreciation of fixed assets,we research the impact of tax preference on enterprise overcapacity.We take the related researches made by foreign and Chinese scholars for reference and also introduce the truth of China's tax preference and overcapacity to study three specific questions.The first is the impact of 2014 policy about accelerating the depreciation of fixed assets on overcapacity.The second is the role of financing restriction and market competition in regulating the effect mechanism of tax preference and overcapacity.The third is to make a deep investigation into the heterogeneity caused by role of tax preference in reducing overcapacity.Taking the panel data and difference-in-difference model of China's listed company in manufacturing industry from 2010 to 2018,we find that accelerated depreciation of the fixed assets in 2014 can significantlyreduce the enterprise overcapacity,research and development investment plays a positive intermediary role,and its policy effect is not strong.Analysis about heterogeneity finds that this policy has a more notable effect on reducing the overcapacity in eastern region and of private enterprises.Further researches show that this policy is affected by financing restriction of enterprise and product market competition.As a result,we can not only help people gain a deep understanding of the micro-mechanism of tax preference reducing overcapacity and identify the key factor of this policy,but also provide experience in better using tax policy.