Research On The Impact Of Tax Reduction On The Digital Transformation Of Enterprises

Nowadays,the global digital wave is sweeping across the world,and seizing the opportunity of digital development is crucial for enhancing the core competitiveness of China’s economy and promoting high-quality economic development.The digital transformation of enterprises is influenced by various factors,and tax policy plays a crucial role among them.Therefore,studying the impact of tax reduction on the digital transformation of enterprises is of great significance.Such a study can not only provide reference for the digital transformation of enterprises,but also serve as a theoretical basis for the formulation of tax special policies.To explore the specific impact mechanism and effect of tax reduction on the development of digital transformation of enterprises,this paper conducts both theoretical and empirical analyses.The introductory chapter of this paper provides an overview of the research background and significance,reviews relevant literature,outlines the research content,methods,and objectives,and discusses the paper’s innovations and limitations.Chapter2 presents the fundamental concepts and theories used in the study and analyzes the mechanism of tax reduction on the digital transformation of enterprises.The third chapter combs the current situation of China ’s enterprise tax reduction policy and enterprise digital transformation and tax reduction,and analyzes the existing deficiencies of tax reduction policy affecting enterprise digital transformation.In Chapter 4,A-share listed companies are used as samples,and variables developed by Li Lin and Wang Chong are employed to measure the degree of tax reduction.The digital transformation of enterprises is measured using the frequency of keywords in the annual report,and corresponding control variables are selected.Descriptive statistics,correlation analysis,benchmark regression analysis,heterogeneity analysis,intermediary effect analysis,and adjustment effect analysis are conducted on the sample data to obtain test results,which are analyzed and interpreted in detail.Finally,Chapter5 summarizes the study’s conclusions and provides suggestions for improving tax preferential policies and promoting the digital transformation of enterprises based on the research findings.This study reveals that tax reduction can effectively facilitate the digital transformation of enterprises.Specifically,tax cuts alleviate the financing constraints faced by enterprises,thus promoting their digital transformation.Furthermore,government subsidies play a positive regulatory role in the relationship between tax reduction and digital transformation.This study also conducts a heterogeneity analysis based on the nature of corporate equity,the region,and the age of the enterprise.The findings suggest that tax cuts in state-owned enterprises have a more significant impact on promoting digital transformation than in non-state-owned enterprises.In terms of regional difference,the eastern region of China has a greater effect on promoting digital transformation than the central and western regions.Moreover,compared with young enterprises,tax cuts have a more significant role in promoting the digital transformation of old enterprises.Based on these findings,this study proposes three recommendations:introducing special tax policies to facilitate enterprise digital transformation,alleviating the financing constraints faced by enterprises,and reducing their soft tax burden.