The Effects Of The Transformation Of The Value-added Tax On Performance Of Listed Company

In order to support the rejuvenation of the Northeast industrial base and accumulate corporations for the implementation of vat reform all over china, In 2003,the central government decided to carry out the reformation from production value-added tax to consumption value-added tax in Northeast Regions. In the next year, the formal document was sent down which decided to carry out trial base transition of value-added tax. Consumption value-added tax has been put into practice from theory in our country. More than three years has gone, many attentions were paid to the reform, such as how about the concrete implementation situation, has it reached the expected target, if the state finance can bear it, what about the influence to the enterprises and so on. Lots of scholars have discussed and researched those questions. The related literatures mainly concentrate on these issues: the discussion on the implementation situation of the transformation, the questions occurred during the transformation, the influence to the regional economic etc. There are much research about the influences to the activities, the financial, the tax burden, the fixed assets investment of the corporations too.This paper unifies through the normative study and the empirical study in the synthetic foundation which the predecessor studies, and then explores the effects about the transformation of VAT influence on the performance of listed companies. This paper introduces the research background, the purpose and significance of the research and results have been researched already firstly. Then briefly describes the basic knowledge about VAT and the company performance. States the related theories on the transformation of vat and analyses the effects of the transformation to the company performance theoretically in the third section. And then tests the theoretical analysis empirically through selecting samples, collecting data and using the statistical software. From the results we can know that,the company performance has been improved generally, but in fact it slightly lowed down firstly and then turned upward when look at it year by year, which should be generated by the indirect impact of the transition. when compared the company performances according to industries, only the manufacturing industry and the petrol and chemical industry in line with the expectations, the performances has been on the upward trend after the transition all along. The remaining industries all dropped after the transition firstly and then increased, and the decreasing range is large in some industries. The reason is multifaceted, such as long payback period of the investment projects, the restrictions of the increment deduction and the attribute of the individual industry itself etc. when compares the company performances according to the size of the company, all of them have been improved, but the large company's have been improved faster and more in contrast. In addition, the results of the regression analysis tell us that, the impact on the company performance has greatly significant after the VAT transition, and the influence degree is the largest in all the variables selected. Most of the rest preferential policies on the company in the Northeast do not impact the performance significantly. In the last part, the article points out the problems that occurred during the transformation of the value-added tax and puts forward some suggestions in a targeted manner.