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Zhai L, Feng Y, Li F, Zhai L. Tax preference, financing constraints and enterprise investment efficiency—Experience, of China’s enterprises investment. PLoS One 2022; 17:e0274336. [PMID: 36137158 PMCID: PMC9499234 DOI: 10.1371/journal.pone.0274336] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [MESH Headings] [Grants] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 04/12/2022] [Accepted: 08/25/2022] [Indexed: 11/18/2022] Open
Abstract
This paper takes the 2014 pilot project of accelerated depreciation of fixed assets as a quasi-natural experiment, and builds a Propensity Score Matching–Difference in Differences (PSM-DID) model based on the data of Chinese listed companies from 2000 to 2019 to test the impact of tax preference on enterprise investment efficiency and its mechanism. The results show that the policy inhibits supported enterprises investment efficiency significantly. Heterogeneity analysis shows that the policy causes greater investment efficiency losses for small and medium-sized enterprises, non-state-owned enterprises and asset-heavy enterprises. The mechanism test found the reason why the policy eased financing constraints but inhibited investment efficiency in short-term. After a variety of robustness tests, the above basic conclusions are still valid. Although the accelerated depreciation policy of fixed assets is conducive to expanding the scale of investment, the incentive effect on investment efficiency is not obvious, and even shows a restraining effect. Given the existence of heterogeneity, the design of the policy should not only distinguish industries, but also pay attention to the differences between different enterprises in the same industry. Strengthening research and development (R&D) innovation and improving the matching mechanism between human capital and fixed investment will help give full play to the incentive effect of this policy. The research in this paper helps to deepen the understanding of the microeconomic effects of tax policy and identify the internal mechanism, which not only enriches the relevant literature, but also provides a reference for the government to better use tax policy to promote the high-quality development of enterprises.
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Affiliation(s)
- Liangliang Zhai
- School of International Trade and Economics, Shandong University of Finance and Economics, Jinan, China
| | - Yujing Feng
- Institute of Finance and Public Management, Anhui University of Finance and Economics, Bengbu, China
- * E-mail:
| | - Fumin Li
- Shandong Longquan Law Firm, Jinan, China
| | - Liping Zhai
- Shandong Pingyin Rural Comercial Bank Co., Ltd, Jinan, China
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