Empirical Research On Venture Capital,Corporate Tax Burden And Deviation Of Investment Structure

In the era of knowledge economy,investment in intangible assets based on innovative factors is gradually becoming an important driving force for improving total factor productivity and promoting economic growth.However,under the inherent characteristics of innovation activities,the existence of financing constraints makes the increase of intangible assets investment a major obstacle.In view of the constraints of internal financing and external financing,how to further improve the level of enterprise innovation,promote the investment of intangible assets and then change the investment structure of enterprises has received extensive attention.All along,in order to meet the investment needs of each stage and promote further economic development,China's tax policy will be adjusted accordingly with the different stages of economic development.And as China becomes the second largest venture capital market,the increase in external sources of funds and the unique advantages of venture capital institutions will also have an impact on corporate investment decisions.Therefore,from the combination of external financing and internal financing,the paper analyzes the impact mechanism of the participation of venture capital and the change of tax burden on the deviation of corporate investment structure.On the one hand,it is conducive to strengthening the implementation of relevant preferential policies in the venture capital industry,on the other hand,it can provide further theoretical basis for the optimization of taxation policies,and lay the tone for guiding enterprises to rationally choose investment directions.This paper analyzes the impact of venture capital penetration and tax burden changes on the deviation of investment structure by using China's A-share listed firms during the year 2010—2017.The results indicate that,firstly,the reduction of tax burden and the entry of venture capital institutions have made Chinese listed companies gradually prefer to invest in intangible assets,but enterprises still show the impulse to acquire land use rights.Secondly,the incentive effect of R&D costs additional deduction policy on innovation in high-tech companies may not be obvious,and the implementation of the VAT reform has not yet shown significant tax cuts,and its overall effect on promoting corporate investment is also not obvious.Thirdly,The increase in the number of venture capital institutions and their heterogeneous changes,or the increase in the proportion of shares held by venture capital institutions could make corporate investment further inclined to intangible assets,venture capital with different characteristics can promote enterprises to strengthen independent innovation,but this biased behavior is more likely to be formed by companies for short-term benefits.According to the robustness test,the study found that venture capital institutions will choose companies beforehand,and driven by their short-term interests,venture capital institutions can effectively promote non-high-tech enterprises to strengthen innovation compared with high-tech enterprises.According to the conclusion,this paper has the following enlightenment.Firstly,whether China's taxation policy can reduce the tax burden of enterprises,and how much is the contribution of tax reduction is still worth exploring.As far as the current situation,the effect of tax reduction on the full implementation of the VAT reform has not been fully reflected,and the contribution of tax reduction to strengthening independent research and development innovation within the enterprise is still limited.The formulation of taxation policies should be further refined in the direction of optimizing tax structure and providing tax incentives.Secondly,the development of China's venture capital market is still not perfect.Venture capital institutions have pre-selection behaviors and pay more attention to short-term benefits,and the venture capital cannot fully bear the negative consequences of long-term innovations with high risks at now.Thirdly,while formulating a more rational and optimized tax policy,the state should fully encourage the development of the venture capital industry,so that venture capital institutions can fully utilize their own advantages to play more supervisory and guiding roles in enterprises.In addition,the combination of venture capital and taxation policy will be carried out to expand the cash flow of enterprises and give full play to the longterm mechanism for stimulating enterprises to enhance their innovation ability and promote sustainable economic development,effectively curbing the excessive demand of enterprises and governments on land resources.And then realizing the kinetic energy conversion led by technology.