Research On The Impact Of VAT Retention And Refund Policy On Enterprise Value

In recent years,in order to cope with the difficulties and challenges in economic development,under the background of tax reduction and fee reduction,China has proposed to deepen the reform of value-added tax,reduce the tax burden of enterprises from all aspects,and solve the difficulties in enterprise development.In a series of VAT system reforms,the tax deduction and refund policy has been paid attention to.Returning the tax deduction and refund to enterprises has to some extent reduced the shortage of funds caused by the increase of the tax deduction and refund in some enterprises,and promoted the steady progress of enterprise production and development.Since 2011,China has been exploring the policy of VAT deduction and refund,and refunding the tax deduction formed by the purchase of fixed assets and raw materials in key industries;In 2018,as the key content of "tax reduction and fee reduction",the tax deduction and refund began to carry out policy pilot,and the tax deduction and refund formed during the operation of advanced manufacturing industries such as equipment manufacturing,modern service industries such as research and development,and power grid enterprises were refunded at one time;In 2019,China refunded the incremental tax allowance for the whole industry,and refunded 60% of the incremental tax for the eligible industries.After that,the scope of the advanced manufacturing industry was continuously broadened;In 2022,a larger scale of tax rebates will be implemented for small and micro enterprises and manufacturing industries.So,will the value-added tax deduction and refund policy have a positive effect on the enterprise value? What is the mechanism behind the effect of this policy? Is there heterogeneity in the impact of policies on enterprise value? Studying the above questions is of great importance to correctly evaluate the effect of the tax rebate policy and further improve the tax rebate policy.Based on the execution status of the tax rebate policy,first of all,put forward the research background and importance of this paper,summarize the relevant documents about the VAT rebate,enterprise value and the impact of the tax rebate on enterprise value,and introduce the main content and methods of this paper;Secondly,it defines the concepts of tax deduction,tax deduction and refund policy and enterprise value,and expounds the important theoretical basis of this paper;Then,based on the theory of tax neutrality and signal transmission mechanism,the paper analyzes the influence of the tax rebate policy on the enterprise value,also puts forward a series of relevant assumptions;Then,introduce the double difference model(DID)adopted,take the CS[2018] No.70 document as a quasi-natural experiment,select the A-share enterprises in the Shanghai and Shenzhen stock markets from 2016 to 2020 as samples,test whether the value-added tax rebate system can promote enterprise value,explore the microeconomic effects of the rebate policy,and test the mechanism and heterogeneity between the rebate policy and enterprise value.The study found that the value-added tax rebate policy implemented in 2018 for 18 major industries has significantly promoted the enterprise value of pilot enterprises.Through further examination,it is found that cash flow and financing constraints play an important role in the mechanism that the VAT retention,offset and refund policy affects the enterprise value;However,profitability does not play a role in the mechanism of tax rebate policies to promote enterprise value.In addition,the implementation effect of the tax rebate policy is heterogeneous,which has a more significant role in promoting the enterprise value of non-state-owned enterprises,small-scale enterprises and manufacturing enterprises.Finally,this paper puts forward the following suggestions: First,improve the content of the tax rebate policy,the conditions of the tax rebate policy,and bring the newly established M-level enterprises into the scope of the tax rebate,so as to give full play to the promotion role of the tax rebate to enhance the enterprise value;Second,further reflect the fairness of the tax rebate policy,continuously expand the scope of pillar industries,gradually eliminate the60% tax rebate ratio for other industries,and release the vitality of enterprises in a wider range;Third,by formulating detailed tax refund operation guidelines and giving certain convenience to taxpayers with high tax credit rating,we can improve taxpayers’ tax compliance,enhance taxpayers’ tax awareness,and make full use of the tax rebate policy to improve enterprise value;Fourth,strengthen the management mechanism of tax deduction and fraud,severely punish the illegal acts of tax deduction and fraud,and resolve the potential risks of tax deduction and refund;Fifth,we should formulate a reasonable financial sharing mechanism,balance the financial resources of the central and local governments,reduce the pressure of tax rebate of governments below the provincial level,and form a long-term effective tax rebate policy to advance the development of enterprises.