The Impact Of Tax Collection And Management On The Financialization Of Manufacturing Enterprises

Manufacturing,as the core of the real economy,is the foundation of a country,the means of national prosperity and the basis of a strong state.But in recent years,due to the slowdown of China’s national economic growth,and the decrease of foreign market demand,manufacturing enterprise development has gradually fallen into difficulties.The financial and real estate fields,as areas with excess profit margins,have become the focuses of investment.The trend of enterprise financialization is becoming increasingly evident.However,excessive financialization of manufacturing enterprises will not only affect normal production and operation and investment and financing activities,but also shake the foundation of the real economy,leading to the occurrence of major systemic risks.Government departments have paid more and more attention to this phenomenon,and have repeatedly stressed the need to revitalize the real economy,curb asset bubbles,focus on manufacturing development difficulties and pain points,and grasp the implementation of financial policies to support the real economy.As an important external governance mechanism,tax collection and management can enhance the control of tax related information and behavior of enterprises,improve the transparency of enterprise information and standardize investment and operation behavior.Therefore,whether tax collection and management will have an impact on the financialization of manufacturing enterprises is worth our attention and discussion.This thesis will test this issue through theoretical and empirical analysis methods.This thesis first reviews the relevant literature on tax collection and management as well as enterprise financialization.It then elucidates appropriate concepts and the methods of measurement,and uses information asymmetry theory,principal-agent theory,and financing prioritization theory as the theoretical basis for research.Secondly,it summarizes the reform process and the existing problems of China’s tax collection and management,gives the overviews of Golden Tax III,analyzes the overall situation and regional discrepancy of the current state of financialisation of Chinese enterprises from the vantage point of financial asset holdings,and summarizes the relationship between tax collection and corporate financialization.Thirdly,it is theoretically demonstrated that tax collection and management inhibits financialization of manufacturing enterprises through its deterrent effect as well as its information intermediary effect;In terms of transmission mechanism,it is analyzed that tax collection and management can inhibit corporate financialization by means of alleviating financing constraints,intensifying financing constraints as well as mitigating the principal-agent problem.Based on the theoretical analysis,from the perspective of national policy orientation and industry representation,this thesis selects data on A-share markets listed manufacturing enterprises from 2010 to 2021.Based on the quasi natural experiment of the "Golden Tax Phase III",the sample companies were divided into a processing group that piloted the "Golden Tax Phase III" in the current year and a control group that did not pilot the "Golden Tax Phase III",and a multiperiod dual difference model was constructed to investigate the impact of tax collection and management on corporate financialization.On this basis,the mechanism of action of tax collection and management on enterprise financialization is analyzed via mechanism testing,and further heterogeneity analysis to test the differential impact of tax collection and management on enterprises with different property rights and sizes is also conducted.Finally,this article draws the following conclusions:(1)Tax collection and management will inhibit the level of manufacturing corporate financialization;(2)Tax collection and management suppress the level of manufacturing corporate financialization by intensifying corporate financing constraints and mitigating principal-agent issues;(3)The inhibitory effect of tax collection and management on the financialization of state-owned enterprises and large enterprises is more significant.In summary,quite a few corresponding recommendations can be adopted.As the government level,it should continue to promote tax collection and management reform relying on modern information technology to create a big data platform for taxation;introduce corresponding supporting policies according to the characteristics of the enterprise,implement classification of tax sources,and improve the efficiency of tax collection and management;strengthen connectivity with other departments,build a multi-level regulatory system,and enhance financial regulatory collaboration;As the enterprise level,it should actively push forward a governance mechanism that combines internal and external governance,is in line with the reality of the enterprise,and improve the overall level of governance.