The Impact Of Tax Cuts On Corporate Risk-taking

Enterprise risk-taking reflects the preference of enterprises for high and low risk when making investment decisions in the process of production and operation,and the higher the risk bearing capacity of the enterprise,the more the enterprise prefers the risk projects in the investment process.This kind of risk appetite of enterprises is not only of great significance to the enterprise itself,but also plays a certain role in social and economic development.The high-risk investment behavior of enterprises can help enterprises obtain higher returns and enhance their core competitiveness;For the whole society,the higher level of venture capital investment of most enterprises will promote the accumulation of social capital,technological progress,promote the productivity of the production factors of the whole society,and achieve high-quality and steady economic growth.However,in the market economy,the venture capital of enterprises has a strong resource dependence,and whether enterprises can have sufficient risk-bearing capacity is inextricably linked to the resources available to enterprises.Reducing various tax burdens can enable the government to make concessions to benefit the people and enterprises,promote the rational and efficient allocation of social resources under the market economy,promote industrial technological innovation,capital accumulation,stabilize the economy and people’s livelihood,and promote the transformation and upgrading of China’s economy.In China,the government,as an important subject of resource allocation in the auxiliary market,can effectively guide the market through corresponding fiscal policies.The government’s vigorous tax reduction,as a fiscal incentive policy that has been continuously implemented in recent years,can play an important role in resource allocation.The tax reduction policy can effectively reduce the outflow of enterprises’ funds,alleviate the pressure of enterprises’ cash flow,help enterprises to actively try in the investment activities facing high risks and high returns,or take measures when facing risks,so as to make more beneficial decisions for the development of enterprises,in fact,improve the risk bearing capacity of enterprises.This paper makes an empirical analysis of the relationship between tax reduction and enterprise risk bearing capacity,to examine whether this policy can promote the improvement of enterprise risk bearing capacity,and to observe whether the role of tax reduction has different results in different regions of the marketization process.The research results show that tax reduction can promote enterprises to improve their risk bearing capacity,and can play a better role in areas with backward marketization process;Tax reduction also plays a different role between state-owned enterprises and non-state-owned enterprises,which can more effectively promote enterprises to increase their own risk taking in non-state-owned enterprises;And for enterprises at different stages of development,they also have different effects.Young enterprises can better obtain policy incentives and actively carry out risk investment.Based on this research,this paper puts forward suggestions from the perspective of the government and the perspective of enterprises.For enterprises,they should make the most efficient use of the preferential funds they have obtained,actively invest and promote their own progress,transformation and upgrading;For the government,it should play a more important role in macro-control,guide the behavior of enterprises with preferential policies,take into account the different roles of tax concessions under different nature and different marketization processes,accurately set different policies,more accurately play the role of the policy,more fully play the role of the government’s directional role,and use the "visible hand" of the government’s macro-policy,Help the "invisible hand" of the market to better promote the high-quality development and further transformation and upgrading of China’s economy.