Research On The Effect Of Fiscal And Taxation Policies On The Value Enhancement Of Cultural Industry Enterprises

In recent years,the cultural industry has developed rapidly and become a new growth point for the national economy,playing an important role in enhancing the country’s cultural soft power and guiding the mainstream ideology.The central and local governments have been increasing their subsidies to the cultural industry,and China’s government has put forward diversified ways to supports the cultural industry,with record amounts of fiscal expenditure,yet there is a lack of adequate theoretical and practical research on whether various fiscal policies have brought about an increase in the value of cultural enterprises.In this context,it is of profound practical significance to study the impact paths and effects of fiscal subsidies and tax incentives have on enhancing the value of cultural industry enterprises.This paper selects 96 domestic A-share listed companies in the cultural industry from2013-2021 for a panel data study to analyse the impact mechanism of fiscal and tax policies have on enhancing the value of cultural enterprises from both theoretical and accounting practice perspectives,this paper also summarizes and sorts out relevant fiscal and tax support policies introduced by the state for the cultural industry since 2003.It draws on relevant literature at home and abroad,and constructs a two-way fixed-effect model to test the effect of fiscal subsidies.The model examines the effect of fiscal subsidies and tax incentives on the value of cultural enterprises.Further extended analyses are conducted from R&D investment,net profit and financing constraint channels to test the impact path of the enhancement effect.The hypothesis of whether there is a preference for fiscal subsidies on cultural enterprises is tested,i.e.whether the government has a preference motive for subsidies due to the total profit,intangible asset ratio and the total asset size of the enterprises.The value of cultural enterprises is divided into three groups to test whether tax incentives have different effects with the size distribution of the value of cultural enterprises.Finally,grouped regressions are used to separately test the heterogeneous effects of cultural enterprises with different property rights and segmental industry attributes on the findings.The conclusions show that: i.there is a significant enhancement effect of fiscal subsidies on the enterprise value of listed companies in the cultural industry,while there is a less obvious inhibitory effect of tax incentives;ii.Tax rebates have different effects as the distribution of enterprise values changes,with tax rebate funds having a significant positive effect on cultural enterprises with low market capitalisation,and the effect diminishing as the value of the enterprise increases;iii.Tax incentives are a better incentive than financial subsidies for cultural enterprises to invest more in R&D;iv.Fiscal incentives policy increases the net profit of enterprises from the channel of accounting practice,which further lifts up the enterprise value through the signaling theory;v.Fiscal incentive policy does help alleviate the financing constraints of companies,but the effect is not obvious;vi.The subsidy income received by non-state-controlled cultural enterprises has a more significant effect on the enhancement of their enterprise value,while state-owned cultural enterprises receive more fiscal subsidies have a suppressive effect on their enterprise.vii.The effect of financial subsidies on the enhancement of the enterprise value of cultural manufacturing and cultural service industries is significant,while tax incentives have a significant inhibitory effect on the enhancement of the enterprise value of cultural manufacturing;viii.There is a hidden positive correlation between the preference of financial subsidies on the profit and asset size of cultural enterprises,i.e.the government does not have a strong incentive to prefer subsidies for enterprises.Based on the above research findings,constructive suggestions are made for the precise use of fiscal policy combinations to enhance the value of cultural industry enterprises thereafter.Firstly,in response to the reality that the effect of tax incentives is weaker than that of fiscal subsidies,the government should use fiscal subsidy policy as the main policy tool to enhance the value of cultural enterprises and evaluate the policy effect in a timely manner.Secondly,In the process of tax rebate policy development and implementation,focus on the heterogeneity of the value of cultural enterprises to avoid useless effects.Thirdly,further broaden the horizontal coverage of tax incentives for China’s cultural industries by focusing subsidies on research and development,evaluating their innovative achievements and including the financing constraints of enterprises in the examination of financial subsidies.Fourthly,fiscal incentives policy makers should pay full attention to the differences in cultural sub-sectors,explore the needs of each industrial chain in the industry,the government should strive to build a fiscal policy that reflects differentiation rather than a one-size-fits-all approach.