The Impact Of Tax Credit Rating Disclosure On The Commercial Credit Financing Of SMEs

All along,the taxation authorities have played a severe and effective restraining role on the tax-related crimes of enterprises through the traditional compulsory tax collection and administration means.However,in the context of digital economy,there are serious loopholes in the effectiveness and responsiveness of the compulsory tax collection and administration mode.Under the call of building "Credit China",taxation authorities actively promote data governance of tax credit platform,endorse enterprises’ credit by implementing tax credit rating system,and stimulate enterprises to consciously comply with their tax obligations by the tax collection and administration mode of "goodness raising".Helping SMEs to alleviate their difficulties.Under the impact of the new epidemic,how to help SMEs cope with the macroeconomic downturn and help them improve their financing ability in the capital market is an urgent issue.Commercial credit financing,based on the degree of trust of all parties in the supply chain,has effectively made up for the shortage of the bank credit system as an alternative financing method in recent years.Then,can the disclosure of tax rating information by the IRS play a policy incentive effect on the level of commercial credit financing for SMEs in China;through which channel mechanism does the non-financial information of tax credit rating result of A grade act on the level of commercial credit financing for SMEs;do different characteristics of SME groups,such as the nature of enterprise equity,management agency cost,etc.,play a role in the tax credit rating system and SME Whether different characteristics of the SME group,such as the nature of corporate equity and management agency costs,play a moderating role in the influence mechanism between the tax credit rating system and SME business credit financing.This is the question that needs to be explored in this paper.In terms of theory,this paper first explores the impact of the tax credit rating results published by the IRS on SMEs’ access to business credit from suppliers through two mechanisms,namely,alleviating information asymmetry and enhancing the social image of enterprises,from signaling theory,reputation information theory,competitive business credit hypothesis,and buyer’s market theory.In addition,this paper attempts to explore how the degree of impact of honest tax payment on the level of commercial credit financing of SMEs with different characteristics differs from four aspects: the nature of corporate equity,the market position of the firm,the agency cost of the firm’s management,and the level of the regional legal system in which the firm is located.In terms of empirical evidence,this paper takes the Tax Credit Management Measures(for Trial Implementation)announced in 2014 as a policy shock and constructs a double difference model to empirically explore the impact of tax credit rating results on SME business credit financing.This paper finds that(1)tax credit rating disclosure can significantly enhance the commercial credit financing level of SMEs;(2)for SMEs with lower market status,higher management agency costs,in a region with a poor level of legal system,and with non-state ownership,a tax credit rating result of A has a stronger contribution to their commercial credit financing level.The findings of this paper help government departments to establish and improve the commercial credit trading market and explore a more stable and mature flexible tax collection and management model.It also helps SMEs to strengthen the fine regulation of obtaining commercial credit financing channels under the current macroeconomic downturn with the continuous adjustment of tax collection and management policies.