Non-Debt Tax Shield,Capital Structure And Enterprise Performance

Modern enterprises have a strong profit purpose,driven by interests,enterprises avoid tax despite repeated prohibition,seriously affecting the national revenue,national interests and the legitimate rights and interests of taxpayers have negative effects.In order to prevent more and more enterprises from drilling policy loopholes,the system of "Enterprise Income Tax Law" is becoming more perfect and punishment is gradually strengthened.Under the background of this system,the desire of enterprises to increase short-term profits in the form of tax avoidance is getting lower and lower,but at the same time,it also curbs the enthusiasm of improving enterprise performance,which is not conducive to the stable development of the capital market.Therefore,in order to maintain the normal tax order,to ensure the national revenue,some projects set up in the pre-tax deduction principle for enterprises to provide a reasonable tax policy support.This tax saving benefit,namely the tax shield effect,has lower risk and cost than the traditional tax avoidance benefit.And the tax shield effect affects the net profit of enterprises,and has an impact on enterprise performance.At the same time,the tax shield effect affects the financing and investment behavior of enterprises.Whether to increase the proportion of interest expense in the pre-tax deduction through debt financing or to increase investment credit in equipment investment will affect the capital structure of enterprises.The change of capital structure will also affect the supervision and decision-making behavior of stakeholders,and ultimately affect the performance of enterprises.Therefore,based on the study of the impact of non-debt tax shield on corporate performance,this paper introduces capital structure into the research framework to study the role of capital structure in the relationship between non-debt taxation shield and corporate performance.This paper selects the financial data of all A-share listed companies in China from 2013 to 2020 as the initial sample,from the theoretical level and empirical level,explores the relationship between non-debt tax shield,capital structure and enterprise performance,and proposes three research assumptions:(1)positive correlation between non-debt tax shield and enterprise performance;(2)negative relationship between non-debt tax shield and capital structure;(3)capital structure plays an intermediary role in the relationship between non-debt tax shield and enterprise performance.The selected data were solid using Excel 2010 and SPSS 23.0 The analysis shows that the random abuse of the shield reduces the operating cost and provides the support of enterprise performance.Second,the substitution effect between the non-debt tax shield reduces the motivation of the enterprise debt financing,and suppresses the capital structure;the third,the non-debt tax shield controls the capital structure,reduces the agency cost of shareholders and creditors and improves the enterprise performance.at the same time The endogenous and stability conclusions were tested to enhance the reliability of the robustness.Finally,based on the analysis of the research conclusions,this paper puts forward relevant suggestions from three aspects:increasing the support of enterprise research and development,reasonable use of "non-debt tax shield effect" and reasonable arrangement of the capital structure of enterprises.