Research On The Impact Of Social Insurance Contribution Rate On Enterprise Performance

At present,China is facing a complex and severe domestic and international situation,with an increase in external risk factors and an increase in the complexity and uncertainty of the internal economic development environment.There are significant strategic opportunities,as well as many contradictions and challenges.The severe macro development environment requires China’s real economy enterprises to enhance their ability to adapt to unfavorable situations and undergo transformation and upgrading.In recent years,due to the continuous increase in production factor costs such as resources,raw materials,and labor,Chinese enterprises have reduced their profit margins and weakened their development vitality,facing significant development pressure.According to the Social Insurance Law of our country,employers and workers must participate in social insurance and pay social insurance premiums in accordance with the law.In fact,employers bear the vast majority of social insurance costs,which deeply affects the profits and benefits of enterprises.The issue of high social insurance contribution rates in China has attracted widespread attention from all sectors of society.Since 2015,the government has continuously introduced policies to lower social insurance rates.In the current context of increasing downward pressure on the economy,reducing the social insurance contribution rate is an important measure to reduce corporate costs.What is the relationship between social insurance rates and the business development of enterprises? It is worth conducting in-depth research.The academic community has conducted extensive research on the impact of social insurance contribution rates on labor employment,employee wages,investment and innovation activities.Overall,the impact of social insurance contribution rates on enterprises is ultimately reflected in their impact on corporate performance.However,scholars have rarely explored the impact of social insurance contribution rates on performance levels from this perspective.Based on this,this article uses financial data of A-share listed companies in China from 2014 to 2020 to empirically study the impact of actual social insurance contribution rate on corporate performance level.The research results are as follows:(1)the actual social insurance contribution rate has a significant negative impact on corporate performance at the 1% level,indicating that increasing the actual social insurance contribution rate will reduce the performance level of enterprises;(2)further analysis found that the negative impact is more significant in enterprises of the central and western regions,capital intensive enterprises,and state-owned enterprises.Finally,from the perspective of coordinating the relationship between multiple parties,this article proposes strategies such as reasonably setting the social insurance contribution rate,establishing a diversified financing mechanism for social insurance funds,improving the guarantee of social insurance fee reduction system,and promoting enterprise income and expenditure reduction through multiple channels.The research content of this article is beneficial for the government to clarify the relationship between social insurance contribution rates and corporate performance,objectively evaluate the micro effects of implementing social insurance reduction policies,and formulate reasonable social insurance contribution rates;It is beneficial for reducing the burden of corporate social security,improving performance levels,and ultimately enhancing the quality and efficiency of China’s economic development.