Impact Of Accelerated Depreciation Policy On Fixed Assets

In recent years,China is faced with internal and external "double constraints",the downward pressure of the economy is increasing,the growth rate of investment in fixed assets is declining,and old fixed assets are still forced to operate.Under this background,the manufacturing industry based on fixed assets is an important support for the national economic development,in order to complete the transformation and upgrading from the root,it is imperative to increase the investment in fixed assets and eliminate and scrap old fixed assets.On this basis,China has successively introduced a number of policies related to accelerated depreciation of fixed assets in manufacturing industry,and gradually rolled out the scope of application of accelerated depreciation by way of pilot,among them,six major industries were included in the pilot in 2014 and enterprises belonging to four major fields were included in the pilot in 2015,and the whole manufacturing industry was included in the pilot scope in 2019.This series of policy stimulus conveys the information that the state encourages enterprises to renew and transform,upgrade their industries and provide them with tax incentives,theoretically speaking,as the receiver of information,under the guidance of national policies,the enterprise’s enthusiasm for investment in fixed assets will inevitably rise,and it will take practical actions for it.However,whether this series of policy impacts have produced the expected effect and whether they will have different effects on different types of enterprises needs further examination.In order to reasonably answer the above questions,after studying and analyzing the related literatures at home and abroad,this thesis first expounds the mechanism of accelerated depreciation policy affecting fixed assets investment from the perspective of theoretical analysis,and analyzes the current situation of accelerated depreciation policy and fixed assets investment in China.Secondly,using the relevant data of A-share manufacturing listed companies in 2011-2018,the accelerated depreciation policy in 2014 and 2015 is regarded as a quasi-natural experiment,and the double difference model is used to empirically test the impact of accelerated depreciation policy on manufacturing fixed assets investment.Then,all the sample objects are grouped according to the nature of property rights,the economic region where they are registered and the life cycle stage of enterprises,and the heterogeneity of the impact of accelerated depreciation policy on fixed assets investment in manufacturing industry is studied.Finally,on the basis of summarizing all the above research conclusions,the corresponding policy suggestions are put forward.The research results of this thesis show that the pilot policies implemented in 2014 and2015 in China have obviously promoted the investment in fixed assets in the manufacturing industry,and the promotion effect has become more remarkable after considering the related control variables.The heterogeneity analysis draws the following conclusions: First,the accelerated depreciation policy has a promoting effect on both private enterprises and state-owned enterprises,but the promoting effect on state-owned enterprises is more significant;Second,the accelerated depreciation policy has played a significant role in promoting the investment in fixed assets in the eastern and western regions,but not in the central and northeast regions.Third,for the enterprises in the growth stage,the accelerated depreciation policy can obviously promote the investment of fixed assets,but the promotion effect is not obvious for the mature stage and the recession stage.According to the results of empirical analysis and the actual situation in China,this paper puts forward some suggestions from the policy formulation level and the implementation level.Policy formulation level: first,appropriately increase the preferential policies,so that the policies can play a better role in alleviating the cash flow pressure of manufacturing enterprises in today’s market where the prices of fixed assets are rising;the second is to expand the scope of application of the policy,so that more enterprises can enjoy the support of the policy;the third is to refine the differentiation policy,enhance the pertinence of the policy,so that different enterprises can enjoy the most suitable tax concessions for themselves.Policy level: first,the government has intensified publicity efforts to make enterprises fully understand the interests of policies;second,enterprises thoroughly implement the accelerated depreciation policy,so that preferential policies can be implemented in every qualified enterprise,and the policies can also exert their due effects;third,enterprises reduce business risks and establish a tax-enterprise relationship of mutual trust.