The Effect Of "Business Tax To VAT" Reform On The Investment Behavior And Enterprise Value Of Listed Enterprises In The Modern Service Industry

"Business Tax to Value-Added Tax"(hereinafter referred to as "BT to VAT")began to open up to the whole country from May 1th,2016."BT to VAT" reform is an important measure of the structural reform of the supply side,continuing to reduce the tax,which has initially achieve the purpose of tax reform.However,the policy goal of"BT to VAT" is not only limited to the tax reduction in the corresponding industry,most importantly,it plans to try to help supply side reform through structural tax reduction,promote the flow of resources and optimize the allocation,alleviate the imbalance and incoordination between supply and demand,and improve the trend of the economic downturn.Enterprises are the microcosmic subject of macroeconomic policy regulation,so it is of great significance to analyze the influence of the "BT to VAT" policy on the financial behavior of the micro enterprises.This paper selects some A-Shared Listed Companies in China's modern service industry as the research sample,and uses the difference-in-difference(DID)model to study the influence mechanism and effect of the "BT to VAT" policy on enterprise tax burden,investment behavior and enterprise value.Based on the effective tax planning theory,tax neutral theory,principal-agent theory,free cash flow hypothesis and financing constraint theory,this paper analyzes the mechanism of "BT to VAT" policy on enterprises' tax burden,investment behavior and enterprise value,and constructs the transmission mechanism of "BT to VAT" policy? tax ?investment behavior?enterprise value.Then we empirically test the effect of "BT to VAT" on these three aspects.In the empirical test part,this paper separately examines the impact of the tax reduction effect on the investment efficiency from underinvested enterprises and overinvested enterprises,then further studies the impact of this effect on the enterprise value.This study expands and deepens the research of the impact of the "BT to VAT"policy on the value of micro enterprises,and provides a specific path to influence the business results of the "BT to VAT",and truly clarifies and explains the advantages and disadvantages of the implementation of the "BT to VAT" policy.It has been found that the implementation of" BT to VAT" will have a significant impact on the tax burden,investment behavior and enterprise value of modern service enterprises,which are as follows:(1)"BT to VAT" significantly reduces the total tax burden of the enterprise,stimulates the investment enthusiasm of the enterprise andexpands the investment scale of the enterprise;(2)There is a significant negative correlation between the "BT to VAT" and inefficiency investment of the underinvested enterprises and a significant positive correlation between the "BT to VAT" and inefficiency investment of the overinvested enterprises,that is,the "BT to VAT" policy can alleviate the underinvested behavior,but it will promote the excessive investment behavior;(3)the "BT to VAT" is positively related to the enterprise value of the underinvested enterprises,and has no significant relationship with the enterprise value of the overinvested enterprise.That is,the "BT to VAT" alleviated the underinvested behavior,so it improved its investment efficiency and promoted the enterprise value.(4)Compared with the enterprises with high financing constraints,the "BT to VAT" is more obvious to the promotion of enterprises' investment efficiency and enterprise value with low financing constraints.At the end of the article,it puts forward suggestions for enterprises to cope with the environmental transformation of "BT to VAT",and proposes measures to improve the investment efficiency and enterprise value.