The Impact Of Fiscal Tax Policies On The Performance Of Huayi Brothers

The Nineteenth National Congress of the Communist Party of China has proposed "to strengthen cultural self-confidence and promote the prosperity of socialist culture." This is also an important manifestation of the party and the country’s continued emphasis on the cultural industry.As an important part of the cultural industry,the film and television industry has an important position.In China,the development of the film and television industry is relatively late,and there is a large gap with western countries.At the same time,the development of the film and television industry requires a large amount of capital investment,making many small and medium-sized enterprises prohibitive.This requires the government to play its "third hand" role and provide appropriate encouragement and support.Among them,fiscal and taxation policies are a very important link.From the perspective of literature,the research on fiscal and taxation policies have basically started from a macro perspective,analyzing the necessity and urgency of the state to formulate related policies.In the analysis,most of them are divided into government subsidies and tax incentives to discuss the differences and characteristics of the two.However,the research on the impact of fiscal and tax policies on specific industries is less studied.In practice,we need to figure out how is the application of fiscal and tax policies in the film and television industry,how can film and television companies use related policies efficiently,and the effects of fiscal and tax policies on the film and television industry.This paper analyzes the financial and tax policies related to the film and television industry over the years,describes the development of the industry and shows the characteristics of the policy and its specific application in the industry.In this paper,Huayi Brothers is selected as an case,and the fiscal and tax policies enjoyed in 2010-2018 were listed.The study found that: Firstly,the financial and taxation policies of the film and television industry are relatively lacking in pertinence,and the continuity of the policies is poor.Secondly,because the film and television industry covers a wide range of businesses and can obtain preferential policies in other industries such as the software industry,animation industry,and high-tech enterprises.Thirdly,because the specific fiscal and taxation policies need to be implemented by local governments,and there is a large gap in support from different governments,many large film and television companies will set up subsidiaries in various places to enjoy more preferential policies.Finally,some local governments will set up a film and television industry park,grant subsidies by signing agreements with film and television enterprises.They will require enterprises to meet certain standards.The government subsidies which given in this form are generally relatively large and have better continuity.In terms of the impact of fiscal and tax policies on the performance of Huayi Brothers,this paper analyzes the ROA,EVA and innovation capabilities.It is found that fiscal and tax policies can indirectly affect corporate performance by affecting the company’s investment strategies and financing strategies.They can make it easier for the listed film and television companies to obtain financing,and can also prompt them to implement an aggressive investment strategy.