Research On The Impact Of The Reduction Of Social Insurance Contribution Rate On Enterprise Investment

Social insurance is a basic component of the national security system,which is jointly contributed by workers,employers and the state.For a long time,the social security contribution rate of Chinese enterprises has been on the high side.In 2016,Chinese government introduced relevant policies to reduce the social insurance contribution rate.Social insurance contribution is a part of the labor cost of enterprises.It is worth paying attention to whether the change of the contribution rate will have an impact on the operation behavior of enterprises.Based on the data of Chinese A-share listed companies from 2013 to 2018,this paper studies the impact of social security rate reduction policy on corporate investment.Based on the existing research on social insurance,this paper explores the internal logical relationship between social insurance contribution and enterprise investment.Firstly,this paper reviews the existing domestic and foreign literature,analyzes the relevant theories of social insurance and enterprise investment,analyzes the mechanism of social insurance on enterprise investment through the theory,and explores how the social insurance contribution rate affects enterprise investment from the perspective of capital replacement of labor and cash flow channels.This paper selects the data of China’s A-share listed companies from CSMAR database and RESSET database during 2013-2018,and analyzes the impact of the reduction of social insurance contribution rate on enterprise investment by using the differential model.It is found that there is a negative relationship between social insurance contribution rate and enterprise investment.The reduction of social insurance contribution rate can increase enterprise investment.In addition,this paper conducts a heterogeneity test on the capital intensity difference,scale difference and ownership difference of enterprises,and finds that the impact of social insurance contribution rate on the investment of labor-intensive enterprises is higher than that of capital-intensive enterprises,on the investment of private enterprises is higher than that of state-owned enterprises,and on the investment of small and medium-sized enterprises is higher than that of large enterprises.Parallel trend test and placebo test were used for robustness analysis.Finally,based on the above analysis,relevant suggestions are put forward.It is necessary to continue to reduce the overall social insurance payment rate of enterprises,strengthen the supply-side structural reform,encourage enterprise investment,improve enterprise competitiveness and stimulate enterprise vitality.At the same time,the formulation of social insurance policies should pay attention to the differences in capital intensity,scale and ownership of enterprises,and formulate differentiated social insurance contribution rate policies.We should take the actual affordability of enterprises as the basis to reduce the burden of enterprises and promote the high-quality development of our economy.