Research On The Influence Of Value-Added Tax Refund On Enterprise Debt Financing Behavior

The Chinese government has been concerned about the various challenges faced by enterprises and has emphasized the importance of stimulating their creativity.To achieve these objectives,“cutting taxes and fees” has become a key term in the field of public policy.As a vital component of policies to cut taxes and fees,the VAT refund policy has had a profound impact on the country’s overall economic operation.It is a significant reform to improve China’s VAT system and a major strategic arrangement.The VAT refund policy implemented in some industries in 2018 helps to increase the disposable funds of enterprises,encourage their innovation in production,facilitate the transformation and upgrading of China’s industrial structure,and assist China in achieving high-quality development.This paper intends to use the introduction of the policy as the background to examine its specific effect on the enterprise entity,especially its influence on the debt financing behavior of the enterprise.This paper begins by reviewing the relevant literature,including literature on VAT refund and corporate debt financing,organizing the corresponding research background,determining the research significance,and outlining the research ideas.Next,by sorting out the background and process of reform,explaining relevant theories,and analyzing the policy mechanism,this paper clarifies the direction and goals of the research.Then,this paper uses the release of relevant policies as a quasi-natural experiment,builds the twoway fixed effects difference-in-differences model,and analyzes the financial data of Ashare listed companies to quantify the implementation effect of the VAT refund policy.After completing the basic regression,a robustness test is conducted to enhance the reliability of the research conclusions and extend the research results through heterogeneity analysis.Finally,based on the previous research results and the current status of relevant policies,the research conclusions are summarized,and relevant policy suggestions are provided.This paper draws the following conclusions from the study: First,the VAT refund policy will increase the debt financing scale of pilot enterprises and raise the proportion of long-term debt.Second,the mechanism analysis shows that the VAT refund policy affects corporate debt financing by influencing the internal cash flow and the external financing environment.Third,through the heterogeneity analysis,it is found that the VAT refund policy has different impacts on different enterprises,the impact on debt financing of non-state-owned enterprises is more significant,the impact on growing enterprises is larger,and the impact on enterprises in the eastern region is more noticeable.Based on the above research conclusions,in order to further improve China’s taxation system,further implement the “cutting taxes and fees” policy,and continue to grow the national economy,summarize the possible limitations of the current VAT refund policy,and put forward some suggestions for further improving China’s VAT credit and refund policy.First,increase the publicity of VAT credit and refund,and fully release the tax reduction dividend.Second,pay attention to the debt structure of enterprises and increase the supply of long-term debt resources.Third,reduce VAT refund compliance costs and improve VAT refund efficiency.