The Effects Of Tax Preference On The Productivity Of Financial Conservative Listed Companies

Financial conservative corporations refer to the companies which continually use lowfinancial leverage in the process of their production. This paper attempts to explore theeffects of tax preferences in financial conservative listed companies. As the primaryindustry, agriculture is the basis of economic development. In connection with theindustrialization of agriculture and the basic characteristic that china is a large agriculturalcountry, the state made a series of agricultural support policies. The party’s congress in thereport clearly pointed out the importance of agricultural development. This paper selectedagriculture as the study sample.We firstly divide the enterprises into conservative and nonconservative and use the data of agricultural listed companies to examine the effect of taxpreferences on the productivity of the enterprises and the channels through which taxpreferences affect productivity by Bayesian hierarchical model. With the results of DICinformation criterion and the BF hypothesis testing results, we can confirm that taxpreferences should serve as a catalyst in the stochastic frontier production function, andtax preferences impact productivity through input productivity, technical efficiency andthe input productivity from the enterprises which have the different conservatism aresignificant different. The estimation results from model2indicate that agricultural listedcompanies with different conservation are different in the output elasticity of inputs andthe tax preferences affect the agricultural listed companies mainly through the outputelasticity of inputs and technical efficiency.