The Influence Of Profit Tax On Enterprise Donation Intention

The economic consequences of dividend tax reform have always been widely concerned.Dividend tax,as a tax based on capital gains,has a double taxation problem with corporate income tax.Integrating the two or lowering the dividend tax rate is a trend in the adjustment of tax structures in countries around the world.Specifically in my country,at the end of 2012,the Ministry of Finance,the State Administration of Taxation,and the China Securities Regulatory Commission jointly issued the "Notice on Issues Concerning the Implementation of Differentiated Individual Income Tax on Dividends of Listed Companies"(Caishui[2012]No.85),which combined dividend tax with shareholding The term is related,the longer the holding period,the lower the dividend tax,which reduces the dividend tax rate for long-term stock holders.However,most of the major shareholders of natural persons in my country are long-term stock holders,so the dividend tax rate of major shareholders of natural persons has fallen.Due to the relatively high degree of concentration of the ownership structure under my country's institutional environment,the phenomenon that the largest shareholder's shareholding ratio is significantly higher than that of other shareholders is more common in my country.When the dividend tax of the large natural person shareholder with control ability drops,it is bound to It will adopt corresponding governance mechanisms to increase its own free cash flow rights and maximize its own interests.At the same time,society's expectations for corporate social responsibility are getting higher and higher,and corporate donations are becoming more common and common today.Enterprises fulfill their social responsibilities and make charitable donations,but it will cause the company to lose its resources and cause damage to the interests of shareholders.Therefore,it is of great significance to study the impact of the decline in the dividend tax of natural person shareholders on corporate donation willingness.This article conducts research from both theoretical and empirical aspects.Firstly,it sorts out the literature on the economic consequences of dividend tax and corporate donation motivation.Then,based on the principal-agent theory,corporate governance theory and social responsibility theory,constructs a theoretical framework for the impact of dividend tax reform on corporate donation willingness,and proposes research hypotheses.Secondly,the initial research sample is set to the A-share listed companies on the Shanghai and Shenzhen stock exchanges for five years before and after the 2012 dividend tax reform(2008-2017),and a double difference model is constructed,using PSM to match,and analyzing the 2012 dividend tax reform Whether the level of corporate donations will drop significantly before and after,let's study the impact of the 2012 dividend tax reform on corporate donation willingness.In the end,this paper does further research,adding the total assets of the enterprise and the combination of the general manager and the chairman of the board as adjustment factors in the model.The purpose is to verify the existing corporate donation motivation.Based on this tax reform,we found that when the dividend tax drops,the willingness to donate to companies controlled by large shareholders of natural persons will be significantly reduced.The robustness test still supports this conclusion.In addition,we use the 2012 dividend tax reform as a"natural experiment" to verify that the motive of enterprises for charitable donations can be to assume social responsibility,and this is related to the size of the enterprise.The larger the enterprise,the more social responsibilities it assumes.It also proves from the perspective of the principal-agent problem that corporate managers have self-interested motives in making donation decisions,and this situation is more obvious in companies with a low degree of integration of the two positions of general manager and chairman.The innovation of this article is that,first of all,this article studies the impact of dividend tax reform on corporate donation willingness.There have been few studies on the relationship between dividend tax reform and corporate donation willingness.The only study by Cheng et al.(2016)found dividends Tax reduction will increase management's cash flow rights and thereby reduce corporate donation motivation.The focus is on the first type of agency problem,that is,the agency conflict between managers and shareholders.This article focuses on the second type of agency problem,namely,small shareholders and large shareholders.The agency problem of the two shareholders supplements the literature on the economic impact of dividend taxes.Second,the research perspective of this article is unique.Different from previous studies that directly use corporate donation motivation as an explained variable,this article adds specific corporate donation motivation as a moderating factor to the model,and validates corporate donation motivation by studying the moderating effect of corporate donation motivation on the entire model.The results are verified with a new perspective.The research conclusions of this article have certain enlightenment for enterprises.This paper verifies that the larger the scale of an enterprise,the higher the public's expectations of it,and the more social responsibilities the enterprise should bear.Therefore,when making a donation decision,an enterprise should consider its development strategy and planning to make a reasonable decision.Secondly,this article verifies that the donations of executives have self-interested motivations,so companies should improve their corporate governance mechanisms,supervise and motivate the management,so that they can make donation decisions that best meet the company's interests and social expectations.The shortcoming of this article is that it does not fully cover all the characteristics of the company when controlling the variables.It just selects some representative important company characteristics with reference to previous studies.Secondly,this article does not distinguish between cash donations and in-kind donations,but uses the charitable donation data disclosed by the company,which should be expanded and refined in future research.