Analysis Of VAT Reform On Production Efficiency Of The Listed Construction Companies

The construction industry occupies an important place in our country.Developed with an extensive mode for a long time,the construction industry faces a situation that both the management ability and the utilization efficiency of resource are low.Nowadays,the construction industry has entered a low-speed growth phase which the industry differentiation is more severe.As one of the most vital industries to carry out the VAT reform,the construction is affected in the management,financial situation and the profitability of the construction companies.Meanwhile,the deduction system of value-added tax is pushing the companies to make transition.In this way,the production efficiency is influenced virtually.This paper first takes 32 listed construction companies as samples.The index evaluation method and principal component analysis method are combined to establishe the index evaluation system.After that,the DEA method is used to calculate the production efficiency of the 32 listed companies under the business tax and value-added tax from 2011 to 2015.The results show that after the tax reform,the comprehensive technical efficiency and the pure technical efficiency are integrally promoted for 13.2 and 14.4 percent while the efficiencydecreased for 6.9 pecent.During the study phase,the comprehensive technical efficiency and the pure technical efficiency keep rising while the scale efficiency remains at a baseline level of 0.8.According to the main business,the 32 listed companies are divided into four subdivided industries,that is the building construction industry,the infrastructure construction industry,the architectural decoration industry and the professional engineering.It is found that the comprehensive technical efficiency and the pure technical efficiency of all the subdivided industries are improved for varying degrees through the reform and keep rising from 2011 to 2105.However,the scale efficiency of the four subdivided industries continues to drop during the study period.Then the thesis establishes the panel data regression models for further analysis.According to the refression results,the correlation and related coefficients are changed after the reform as well as the number of influence factor.All the changes are contributed to the change of the production efficiency.After the VAT reform,the scale and the ratio of new-added production & operation fixed assets have positive correlation with the comprehensive efficieny,which makes the comprehensive efficieny improved.The coefficients between the ratio of newadded production & operation fixed assets and pure efficiency is advanced from 0.122 to 0.150,which enhances the pure efficiency.The decline of scale efficiency is casued by two reasons,that is the related coefficients of net profit margin as well as the proportion of production cost to total are droped,the correlation between the scale and the scale efficiency is transferred from positive into negative.Finally,it is concluded that the influence of VAT reform on construction listed companies is mainly reflected in the production efficiency and its variation trend.In addition,the correlationship and related coefficients varies with the change of tax system.These two aspects of changes explains the change of production efficiency.In the future,the development tendency of production efficiency will become more stable.However,it is needed to keep focus on the issue of resource waste because the scale efficiency seems to get worse under valueadded tax.It is suggested that the listed companies should enhance the level of fine management and the ability of resource allocation gradually.Meanwhile,it is necessary to keep the size of the companies under control and achieve a smooth and healthy development.