An Empirical Study Of The Impact Of Value-added Tax Reformed On Enterprise Performance Of Listed Companies In China

Business Tax reformed to VAT is not only to improve the tax system, but also to reducethe tax burden on the tertiary industry. IF tax burden increased, the performance of enterpriseswill decrease. IF reducing the tax burden, then it will improve the business performance levels.To analysis how much benefit can it bring? Whether a company can really enjoy the benefits?Can provide guidance for the experience, it can also provide an effective response to theupcoming reform, so this study has important practical significance.In order to study the influence on corporate financial performance, this paper choose “thechange of tax burden”,“the deduction effects (including the effects of production costs andfixed assets deductible deductible effect)” and “the increase on tac rate” to analysis theinfluence of the “Business Tax reformed to VAT”. In this paper, we choose147listedcompanies’ financial data from2012-2013to study, according to the result of descriptiveanalysis and panel models multiple regression. We concluded the following empirical results:(1)“The reformed of Business Tax to VAT” can reduce the tax burden of enterprises andimprove the financial performance. Which, according to industry grouping regression foundthat: there are differenct impacts on different sectors of the financial performance.“Thereformed of Business Tax to VAT” can reduces the tax burden of modern service enterprises,improve the financial performance levels, while transportation companies increasing ratherthan reducing the tax burden.“The reformed of Business Tax to VAT” reduces corporate’sfinancial performance. According to the regional grouping regression found that:“Thereformed of Business Tax to VAT” has different effects on different parts of the pilotenterprises. In Beijing, as it’s economic is more developed,“The reformed of Business Tax toVAT” the promotion of the corporate financial performance is hinger than Shanghai andGuangdong.(2)It input tax deduction rate and corporate financial performance was a positivecorrelation between higher the deductible, the more fully deductible, the greater the level offinancial performance improved margin. Among them, the production cost of the deductibleand the effects of corporate financial performance is positively correlated; and deductibleeffects of fixed assets was not associated with corporate financial performance.(3) Due to the increased tax rates, it reduces the company’s financial performance, and the greater themagnitude of the rate raise, the lower levels of financial performance will have; transportation(tax rate increases8%) reduction in the magnitude of the financial performance of a highlevel in modern service (tax rate increases1%).