Value Added Tax Reduction,Bargaining Power And Enterprise Value

As the largest tax revenue in China,value-added tax has been in the stage ofdeepening reform in recent ten years,from the transformation of value-added tax,business tax to value-added tax,to the value-added tax simplification and adjustment currently.In recent years,China has continuously stressed the importance of tax reduction and fee reduction in government reports.For value-added tax,its tax rate has been reduced to a certain extent from 2017 to 2019,which shows the important position of value-added tax reform in tax reduction and fee reduction.So,what is the effect of'such a large-scale tax reduction?Who will enjoy more tax dividends in the process of tax reduction?Can we further improve the benefits of tax reduction for enterprises?These key questions need to be answered scientifically.In view of this,this paper takes 2018 VAT tax reduction policy as a natural experiment,takes A-share listed companies as a sample,and uses event research method to study the impact of VAT tax rate reduction on corporate value.Furthermore,this paper uses Hong Kong listed companies as samples,and uses the differences in differences method to make further tests,and gets the same conclusion.The main contributions of this paper are as follows:first of all,as China started to implement the policy of reducing the value-added tax rate from 2017 to 201 9,there are relatively few studies on the impact of the change of the value-added tax rate on the value of enterprises in China at present.This paper examines the economic consequences of reducing the value-added tax rate,which is a useful supplement to the relevant research on the value-added tax reform.Secondly,in terms of methodology,on the one hand,this paper uses the short-term response of the capital market to evaluate the overall effect of the policy,which can provide more timely scientific results compared with the post test after several years of policy-making;on the other hand,under the condition of the implementation of universal policy in the mainland,this paper not only uses the event research method to conduct research,but also uses the Hong Kong stock market to create the experimental group and the control group so as to use the differences in differences method,which is more credible in policy evaluation The setting of differences in differences method in this paper has strong innovation and practicability under the similar background.Finally,in the practical significance,this paper provides direct empirical evidence for reducing the economic consequences of VAT tax rate reform,which can provide reference and basis for policy makers to improve China's VAT tax system.The research of this paper proves that the inclusive VAT tax reduction can indeed increase the enterprise value of the relevant enterprises,which is consistent with the goal of the VAT tax reduction policy formulation.Therefore,this paper suggests that the supervision and implementation of the relevant measures should be strengthened while the VAT tax reduction policy is introduced,so that the effect of the tax reduction policy can truly benefit the enterprises.At the same time,this study proves that enterprises or industries with relatively high bargaining power have more profits in the process of VAT reduction.Therefore,when implementing VAT reduction,the government can also issue corresponding measures,on the one hand,reduce the monopoly phenomenon of industries or enterprises,on the other hand,pay attention to enterprises or industries with relatively weak market position.