Fiscal&Tax Policy,Property Rights Character And M&A Behavior Of Culture Enterprise

The "12th five-year plan" makes higher requirements for prosperity and development of culture industries,however,China's cultural industry has long been faced with poor market concentration and weak overall strength,coupled with the culture industry upgrading demand.Through M&A,enterprise can expand its own advantage or move into new areas,and it will be helpful to overcome the weakness and build large domestic culture groups.Therefore,in recent years,the ministry of finance and other ministries have issued a series of fiscal and tax policies to support the development of culture industry,mainly including increasing fiscal spending and offering tax breaks.However,the national fiscal and tax policy's influence on the culture enterprise M&A is also worth testing.On the basis of literature review and theoretical analysis,this paper selects the sample data of culture enterprise M&A between 2010 and 2015 of listed companies,and then conducts empirical test in order to evaluate the fiscal and tax policy's influence on culture enterprise's industry consolidation M&A and cross-regional M&A in the " 12th five-year plan" period.First of all,this paper explores the local macro fiscal and tax's influence on M&A,Empirical test finds that local government's fiscal policy on culture industry contributes to the occurrence of industry consolidation M&A as scheduled,but suppresses the flow of capital between regions.Meanwhile,local high tax burden can stimulate culture enterprises' M&A,and the enterprise will be more willing to choose cross-regional M&A,in order to reduce the tax burden.Secondly,using government subsidies and effective tax rate as supplementary,the study finds that although in state-owned enterprises fiscal and tax policy can stimulate M&A,but direct government subsidies will inhibit the occurrence of m&a instead.In addition,the state-owned enterprise'M&A is more likely to happen when it has lower tax rate.Again,grouping the samples by "state-owned" or "private",this paper finds that local fiscal stimulus for M&A is more obvious in the state-owned enterprises.However,the state-owned nature curbs cross-regional M&A under financial regional competition,but promotes the occurrence of cross-regional M&A under the tax competition.This paper also puts forward the following Suggestions:First,the central government should admit the value of regional fiscal and tax competition.Meanwhile,government should promote the development of culture industry by infrastructure,credit,tax reduction and other fiscal and tax policies,but not direct government subsidies.Second,local government's fiscal and tax policies can stimulate M&A and reduce the capital outflow.