Analysis Of The Impact Of Accelerated Depreciation On Enterprise Fixed Assets Investment

In recent years,the development of the market economy has faced overall downward pressure brought about by "double constraints".Compared with other industries,as a pillar industry for economic development,the pressure of transformation and upgrading for manufacturing industry will be undoubtedly more urgent.Fixed asset investment plays a vital role in breaking through the bottleneck in the development of manufacturing enterprises in the new situation.Since 2014,the State has issued a series of documents to improve the Accelerated Depreciation related policies,extending the scope of the policy,and gradually implemented the new policy of accelerated depreciation in the whole industry.For example,in 2014,the State promulgated'Notice on Improving the Enterprise Income Tax Policy for Accelerated Depreciation of Fixed Assets'(Fiscal Tax[2014]75),which clarifies that enterprises in six manufacturing industries,such as bio-manufacture,can shorten the depreciation period or adopt the method of Accelerated Depreciation for newly purchased fixed assets;in 2015,the government expanded the preferential scope of this policy to industries in four key areas,such as light industry.In 2018,the Accelerated Depreciation for equipment and appliances in the whole industry were further deepened.Continuous improvement of fixed assets and accelerated depreciation policy of R&D instruments and equipment will not only help ease the tax burden of enterprises in the initial stage,but also mobilize the willingness of enterprises to invest in new equipment and pay attention to R&D innovation.Furthermore,it is of great significance to transform the competitiveness of traditional industries,to provide a good policy environment for enhancing the economic development momentum,and to improve the tax system of supporting enterprise innovation to improve quality,efficiency and upgrading.This paper takes the Accelerated Depreciation Policy as an entry point,adopting a combination of qualitative and quantitative analysis.In the qualitative analysis,the paper analyzes the evolution and current implementation status to evaluate the policy.In the quantitative analysis,data of the A-share listed enterprises from 2012 to 2017 was selected as the research sample,and the'Notice on Further Improving the Accelerated Depreciation Corporate Income Tax Policy for Fixed Assets'in 2015 is regarded as a quasi-natural experiment.By using double difference models,the paper plans to explore the specific impact of this expansion policy on the level of fixed assetinvestment.Further,heterogeneity analysis is carried out by classifying different enterprises into different scales,different financing constraints,different profit levels,and different ownership.Finally,in view of the status quo and empirical analysis of the implementation in China,the paper will put forward relevant suggestions for policy on implementation and improvement in the next step,encourage manufacturing enterprises to actively apply policies,finally support the manufacturing enterprises to update equipment and promote the leap of production technology.The results show that Accelerated Depreciation in 2015 has significantly promoted the investment in fixed assets of enterprises.Although in the short run,this policy may cause the reduction of tax revenue in China,however in the long run,it will not lead to the loss of tax revenue,but will promote the depreciation of fixed assets into enterprise costs and accelerate the conversion of costs into assets.It exchanges the time value of tax revenue for long-term and healthy economic development.Specifically,Accelerated Depreciation makes more prominent effects on fixed assets investment of small and medium-sized enterprises than large enterprises;it makes more prominent effects on fixed assets investment of high-tinancing-constrained enterprises than on low-financing-constrained enterprises;it makes more prominent effects on fixed assets investment of high-profitable enterprises than on low-profitable enterprises;and it makes more pro,minent effects on state-owned enterprises.Based on this,this paper argues that the key to improving fixed asset investment in manufacturing industry is to implement differential policies,to highlight the goal of guiding technological progress and optimizing resource allocation,to enrich the form of tax incentives for manufacturing industry,and to fully consider the mechanism of different policies and the cross-effects between policies.At the same time,manufacturing enterprises should be encouraged to actively apply policies through various channels to support updating equipment and promoting the leap-forward development of production technology.