Analysis Of The Influence Of Accelerated Depreciation Policy On Enterprise Investment

After more than 30 years of rapid economic growth,China’s economy has entered the new normal of economic development with the characteristics of steady progress and high-quality development.In recent years,the rapid rise of the Internet and artificial intelligence has led to the flow of corporate funds to this field,and the phenomenon of "moving away from reality to virtual reality" has emerged.At the same time,the manufacturing industry has too much low-end production capacity,insufficient high-end production capacity and long-term environmental pollution.In order to alleviate the pressure of enterprises,assist manufacturing enterprises to de-stock,achieve industrial upgrading and green and healthy development,consolidate the status of the real economy,and accelerate the realization of the goal of manufacturing power,the Ministry of Finance and the State Administration of Taxation jointly issued the accelerated depreciation policy in 2014,This is the first official document on accelerated depreciation policy in China.The policy stipulates that enterprises in six major industries,including bio-pharmaceutical manufacturing and special equipment manufacturing,can adopt accelerated depreciation for newly purchased fixed assets;In2015,four sectors including light industry,textile,machinery and automobile were added to the six industries.In 2019,the accelerated depreciation policy has expanded the scope of benefits of the policy to all manufacturing industries.The country continues to expand the scope of benefits from the accelerated depreciation policy.In the short term,enterprises can delay tax payment,reduce tax burden,provide more financial support for enterprise production and operation,and increase fixed assets investment for the purpose of expanding enterprise production scale;For the development of the entire life cycle of the enterprise,increasing the investment in advanced,water-saving,energy-saving and environmental protection equipment can actively eliminate backward production capacity,realize the upgrading of the entire industrial structure,extend the life cycle of the enterprise,promote the research and development of manufacturing industry and use of advanced technology and equipment,and promote the further upgrading and transformation of the manufacturing industry.Theoretically,the accelerated depreciation policy can promote the investment of fixed assets of enterprises,but the factors that affect the investment of enterprises are numerous and complex,and may be affected by factors such as profitability and asset-liability ratio.At the same time,the impact of the size of enterprises and the level of financing constraints on investment may also be different.In order to verify whether the tax saving income and increasing cash flow brought about by the accelerated depreciation policy will really enhance the investment willingness of enterprise managers and expand the investment scale,and what is the impact path,these issues need to be further tested.Since Chinese scholars’ research on the accelerated depreciation policy of fixed assets on enterprise investment mostly focuses on the accelerated depreciation policy in2014 and 2015,and less on the accelerated depreciation policy in 2019,this paper will study the accelerated depreciation policy in 2019 through literature analysis,comparative analysis and empirical analysis,so as to enrich the theoretical research of its policy and promote enterprises to optimize investment decisions,Improve the ability to make rational use of funds.This paper will take the accelerated depreciation policy in 2019 as the main research object.After summarizing and analyzing the current situation of fixed assets investment in the whole society and manufacturing industry,we will then use empirical analysis methods and data from listed companies as sample data to build a fixed effect model to analyze the research theme of this paper.Through OLS and FE regression results,it can be seen that the correlation between the accelerated depreciation policy and the expansion of the investment scale of enterprises is significantly positive at the level of 1%,indicating that the policy has an obvious promotion effect on the investment of enterprises,and its regression results are stable.The fixed effect model is used to conduct benchmark regression on enterprises with different enterprise sizes and financing levels.It is found that the regression result of accelerated depreciation policy on the investment of small enterprises and enterprises with high financing constraints is significantly positive,that is,accelerated depreciation has a significant role in promoting the investment of these two types of enterprises.Therefore,it can be seen that accelerated depreciation policy has heterogeneity in terms of enterprise size and financing level on enterprises’ fixed assets investment.Based on the summary and analysis of the empirical research results,it is concluded that the accelerated depreciation policy can significantly promote the expansion of investment scale of enterprises.At the same time,enterprises with large financing constraints and small-scale enterprises are more sensitive to cash flow,and the accelerated depreciation policy can promote the fixed assets investment of the enterprise.In view of the content and implementation of the accelerated depreciation policy,suggestions are put forward to expand the scope of application of the policy,formulate differentiated preferential policies,innovate the management mode of the policy and coordinate the use of the policy with other measures,while suggestions are put forward for enterprises to use the tax policy flexibly according to their own characteristics.