Study On The Impact Of VAT Transformation On The Investment And Financing Activities Of Enterprises

Promulgation and implementation of VAT policy makes our country from production-based VTA to consumption-type VAT. On one hand, it eliminates the so-called double taxation of capital projects and restores tax neutrality; On the other hand, it can reduce the corporate capital tax, so as to stimulate fixed assets investment. Therefore, under the value-added tax policy, the VAT tax base of listed companies has reduced, allowing the input tax payments of machinery purchasing by the companies deducted from output tax and the growth of current cash flow. So VAT transformation can produce certain influence on corporation’s investment and financing activities.First of all, this paper summarized the related articles, and analyses the impact of China’s. The author explored the affecting factors on enterprise R&D investment. The empirical results show that, the transformation of value-added tax promotes the enterprise’s R&D investment.Secondly, the transformation of value-added tax leads to the investment boom, which needs more funds to support. In this case, what kind of enterprise can obtain more finance? After the transformation of value-added tax, what kind of enterprises can get finance at a lower cost? The investment in research and development of an enterprise can promote the enterprises to improve production efficiency, and support for the company’s better profit. Enterprises which have higher R&D investment level can pass the companies’ better passages and those managers’ "bigger and stronger" self serving motives to internal and external information users. Therefore, based on the distinction between R&D spending level, the author establishes regression model, which can empirical tests the hypothesis. Finally prove that, compared with the companies with lower R&D investment level, enterprises with higher R&D investment level are easier to easier to increase the endogenous financing by reducing the dividend payment. At the same time, the debt financing cost reduces more obvious after the transformation of value-added tax. These results also from another angle prove the Signaling theory pays a role in the VAT transformation. And demonstrate the company’s R&D investment convey a positive message to the internal and external information user.