Research On The Impact Of Financial Subsidies And Tax Incentives On The Sustainable Development Of Manufacturing Enterprises

The report of the 20 th National Congress clearly pointed out that it is necessary to focus on the real economy and accelerate the construction of a manufacturing power.Manufacturing enterprises are an important part of the real economy,and are the mainstay of ensuring employment,protecting people’s livelihood,stabilizing expectations,promoting economic growth,and enhancing scientific and technological innovation.The sustained stability of manufacturing development is an important guarantee for China to achieve highquality development.Therefore,to implement the new development concept and achieve economic acceleration and shifting,we must pay attention to improving the sustainable development of China’s manufacturing enterprises.However,at present,there are still many problems in the development of China’s manufacturing enterprises: many large enterprises,especially state-owned enterprises,lack development momentum due to difficult institutional reform,small and medium-sized enterprises are also facing capacity constraints and insufficient sustainable development caused by external environmental problems.In recent years,China has implemented a series of fiscal and taxation policies to support the development of the manufacturing industry,what impact do these policies have on the sustainable development of the manufacturing industry? What fiscal and taxation policies will we implement in the future to enhance the sustainable development of manufacturing enterprises? These issues deserve our analysis and study.Therefore,this paper analyzes and sorts out the relevant theories,collects relevant data,and discusses the impact of government subsidies and tax incentives on the sustainable development of manufacturing enterprises.This paper first sorts out the relevant literature,reviews corporate sustainable development and the relationship between corporate sustainable development and government subsidies and tax incentives,and determines the research framework of this paper.Then,this paper expounds the basic concepts of government subsidies,tax incentives and sustainable development of enterprises involved in this paper,and introduces the relevant theoretical basis The hypotheses of this paper are put forward on the theoretical basis.Subsequently,this paper analyzes the development status of China’s manufacturing industry and the current situation of government subsidies and tax incentives.The empirical part adopts the financial data of listed manufacturing enterprises in China from 2010 to 2019.First this paper constructs the evaluation system of sustainable development ability of enterprises through factor analysis,constructs comprehensive indicators and extracts five common factors to characterize enterprise profitability,solvency,operation ability,growth ability and innovation ability.Then,a fixed-effect model of the impact of government subsidies and tax incentives on the sustainable development of manufacturing enterprises is constructed,and the influence effects of government subsidies and tax incentives on the five common factors are explored,and the internal mechanism of government subsidies and tax incentives on the sustainable development of enterprises is further analyzed.The conclusions of this study are as follows:(1)Government subsidies and tax incentives can effectively promote the sustainable development of manufacturing enterprises.And the specific paths that affect the sustainable development of manufacturing enterprises are different.(2)Government subsidies can improve the profitability,growth ability and operation ability of manufacturing enterprises,and have a certain inhibitory effect on debt repayment and research and development capabilities.(3)Tax incentives can effectively promote the profitability,solvency,operation ability and innovation ability of manufacturing enterprises,but they are significantly negatively correlated with the growth ability factor of manufacturing enterprises.Finally,based on theoretical analysis,status quo analysis and empirical analysis,this paper puts forward policy suggestions on improving the government subsidy policy system,enriching policy forms,improving the core competitiveness of manufacturing enterprises,establishing a full-link performance management system for subsidy funds,optimizing the tax system and tax collection methods,enriching tax preferential means,and expanding coverage.