Research On The Effect Of GEM Enterprise Income Tax Preference On Enterprise Research And Development Investment

In the process of building a modern economic system,China implements the innovation driven development strategy.Technological innovation is the leading factor of today’s economic growth.Enhancing innovation ability is very important to enhance national competitiveness.As the main body of national innovation,enterprises are the key departments of technological innovation,the transformation of basic research and the application of innovative achievements.In the actual innovation process,enterprises are facing multiple difficulties such as lack of funds,long R&D cycle and high risk.The Chinese government has implemented a large number of preferential policies for enterprise income tax to reduce the burden of enterprises,in order to encourage enterprises to strengthen R&D investment.Under this background,this paper explores the incentive effect of R&D tax on enterprises.At the same time,due to the different life cycles of enterprises,there are differences in enterprise profitability and capital status,which may have an impact on the actual effect of policy implementation.Therefore,from the perspective of enterprise life cycle,this paper studies the impact of preferential policies of enterprise income tax on the R&D investment intensity of enterprises in different life cycles.Firstly,this paper expounds the theoretical basis and mechanism of the impact of preferential corporate income tax policies on the intensity of enterprise R&D investment,and puts forward the research hypothesis of this paper.Secondly,this paper summarizes the preferential policies of enterprise income tax implemented by our government,analyzes the current situation of R&D investment of Chinese enterprises,and compares with the relevant policies and data of the United States,Japan,South Korea and other innovative powers.Through comparative analysis,this paper summarizes the differences between China’s preferential policies and R&D investment and innovation power.Thirdly,taking the financial data of GEM listed companies from 2014 to 2019 as the sample,multiple linear regression analysis is carried out.When selecting the enterprise life cycle measurement indicators,first use the comprehensive index analysis method for measurement,and then use the cash flow group method for robustness test to ensure the reliability of the results.Research findings:1.On the whole,the preferential policies of enterprise income tax implemented by the government can promote enterprises to improve the intensity of R&D investment;2.This incentive effect is different due to the different life cycle of the enterprise.Among them,the incentive effect is significant for mature enterprises,but not for growing and declining enterprises.Finally,according to the research conclusion of this paper,this paper puts forward some policy suggestions to optimize China’s enterprise income tax preferential policies and encourage enterprises to increase R&D investment.