The Research On Tax-saving Motivation Of Corporate M&A Under The Background Of Macro Tax Reduction

In recent years,the wave of mergers and acquisitions in China's capital market has continued.However,Successful mergers and acquisitions depend on the effective matching of the acquirer and the acquiree in all aspects of resources,culture,and management systems.Corporate mergers and acquisitions are affected by many factors,including the consideration of long-term development strategies and the realization of corresponding financial benefits in the short term.Many cases of merger and acquisition failures have shown that if companies pursue mergers with the goal of pursuing short-term financial benefits,they will increase the risk of corporate mergers and acquisitions failure.Based on this,this paper focuses on empirical research on one of the short-term financial motivations of corporate mergers and acquisitions,namely"tax saving motivation".More importantly,it analyzes whether the mergers and acquisitions caused by the enterprise's "tax-saving" motivation can promote corporate performance.Finally,combined with case analysis,the tax incentives for corporate mergers and acquisitions are analyzed in detail,and the practical significance of the large-scale tax reduction policies implemented by China in recent years for reducing inefficient mergers and acquisitions by enterprises due to short-term tax savings is further discussed.Specifically,this article collects financial data and mergers and acquisitions data of China's listed companies from 2012 to 2018,and uses panel OLS regression model and panel Logit model to empirically test whether the tax saving motivation of Chinese listed companies' mergers and acquisitions exists.The study found that,in the horizontal term,when the actual tax burden level of the company is high(low),the probability of mergers and acquisitions is higher(low),and in the dynamic term,when the actual tax burden of the company becomes higher(low),the The higher the probability of a merger(low).That is,"tax-saving" is indeed one of the important reasons to promote corporate mergers and acquisitions.Further research found that mergers and acquisitions by companies due to "tax-saving" motivation have no significant impact on improving their financial performance or have a significant negative impact.This shows that mergers and acquisitions by companies for short-term financial gains are inefficient.Finally,because the probability of corporate mergers and acquisitions will decrease with the reduction of the actual tax burden,when the state reduces the actual tax burden of the enterprise through tax reduction policies,the tax cost that the enterprise needs to pay decreases,and the tax revenue saved by the enterprise from the merger and acquisition will shrink significantly.From this perspective,due to the implementation of the large-scale tax reduction policy,the actual macro tax burden has decreased,which has weakened the probability of enterprises making mergers and acquisitions due to short-term financial factors.In other words,the country's tax reduction policy is conducive to promoting effective mergers and acquisitions based on long-term financial strategies.Case calculations have also confirmed this view.Based on the research conclusions,this article puts forward three suggestions for optimizing corporate mergers and acquisitions.First,governments at all levels should further implement the central government's policies on tax reductions.Second,the tax system should further improve the design of the system for evading mergers and acquisitions by companies based on short-term financial behavior,and encourage companies to conduct mergers and acquisitions based on long-term financial planning.Third,help enterprises and related personnel to establish the correct concept of mergers and acquisitions.