Tax Incentives To Foreign Direct Investment, Corporate Finance Research

With the rapid development of business and technology companies face to drastic competition, and the entry of more and more Foreign Direct Investment (FDI) bring opportunities and threats. In the process of giving impetus to advance of foreign direct investment industry, government plays an increasingly important role. Tax preference is one of the special economic policies that government can use. This article tries to be able to have a more concrete understanding of the finance effect of tax policy through analyzing how tax preference policy of FDI affects enterprise's financial indexes.This article carries on the analysis to Foreign Direct Investment (FDI) and Direct Investment(DI) in Zhejiang Province, in order to promulgates how the tax preference policy affects financial system of enterprise. According to the cultural heritage of the past and the actual request of financial control, this article divides the enterprise finance system into four aspects: the property management ability, the profit ability, paying off a debt the ability and the growth ability, indicated with the corresponding eight financial indexes; then it studies the tax preference whether has the remarkable influence on these aspects, and how much it has. At the same time, according to the economical nature, different tax preference projects and time scope of tax preference, it divides the foreign direct investment enterprise into different types, then it tries to find that whether tax preference has the remarkable influence on that four aspects and how much it has.The research discovers that:(1) Whether enjoy the tax preference has the obvious influence to main camp service profit margin, property net profit rate and property ratio of debt.(2) The economic property has the obvious influence to the total property cycling rate.(3) Tax preference project has the obvious influence to sustainable rate of increment, property net profit rate, total property cycling rate and rapid floating assets ratio.(4) Time scope of tax preference has the obvious influence to bankrupt possibility, property ratio of debt, sustainable rate of increment and property net profit rate.Finally, this article also puts forward some proposals about industrial guidance, tax preference method and tax preference monitoring.