Analysis On The Difference Of Incentive Effect Of Tax Preference And Fiscal Subsidy Policy On Enterprise R&D

Innovation plays an important role in promoting economic development.Nowadays,innovation has become the focus of the world's attention,and enterprises are the main producers of innovation.Therefore,all countries in the world have promulgated policies and measures to encourage enterprises'R&D innovation.Due to the influence of external factors,R&D activities of enterprises are limited,so the government should give policy support.There are tax incentives and financial subsidies for government support policies for R&D,but the incentive effects of these two policies may be different.This paper aims at improving R&D investment of enterprises,and compares the incentive effects of the two policies in different industries and in the same industry.It is hoped that the government will pay attention to the difference between the two methods when using fiscal and taxation means to stimulate enterprises to increase R&D investment,and implement differentiated policy support for different industries to improve policy efficiency,so as to achieve the optimal incentive effect.The first chapter of this paper is the introduction,which introduces the background and significance of the topic,the frame of thinking,the analysis method,the possible innovation and shortcomings.The second chapter is a literature review,mainly introducing the characteristics of tax preferences and financial subsidies policies by Chinese and foreign scholars,and comparing the incentive effect of R&D expenditure.The third chapter is the theoretical analysis,mainly introducing the differences of the characteristics of the current fiscal subsidy and tax preferential policies in China and the theory of information asymmetry.Chapter 4 is empirical analysis.According to the theoretical analysis,the corresponding hypothesis is made.Through the regression analysis of the nine-year data of listed companies,the above hypothesis is verified.The fifth chapter is the introduction of foreign experience,combined with foreign policy experience,to provide ideas for the further improvement of China's fiscal and taxation system.Chapter six is conclusions and suggestions.In theoretical analysis,after analyzing the impact of information asymmetry on the two policies,and comparing the characteristics of the two policies,it is found that the fiscal subsidy policy has better resistance to the moral hazard in the theory of information asymmetry,while the tax preferential policy has weaker resistance to the moral hazard.Further,this paper finds that due to the influence of "adverse selection".tax preferences and financial subsidies have different incentive effects among different industries and within the same industry,and puts forward relevant assumptions.In empirical analysis,this paper collects data related to R&D investment of listed companies from 09 to 17 years,and obtains more than 25,000 sample data.Based on this,an Fixed-effect model with R&D investment as dependent variable and tax preference and financial subsidy policy as independent variable is established to verify the above assumptions.Combining with the advanced experience of other countries,this paper puts forward some suggestions for the improvement of China's fiscal and taxation system.After the above analysis,this paper concludes that the fiscal subsidy policy has a positive and significant incentive effect on both the general and specific industries,while the tax preferential policy has a negative incentive effect.Therefore,this paper argues that the fiscal subsidy has a better resistance to "moral hazard" than the tax preference.It is suggested that the proportion of fiscal subsidy expenditure should be increased under a certain total fiscal expenditure.Reduce the proportion of expenditure on tax incentives.At the same time,because of the influence of "adverse selection",fiscal and tax incentive policies have different incentive effects among different industries and in the same industry.In order to improve the "adverse selection",it is suggested that the order of financial subsidies to increase support for specific industries is:beverage and tea manufacturing,agricultural and sideline food processing,electronic equipment manufacturing,special equipment manufacturing,automobile manufacturing,pharmaceutical manufacturing,equipment manufacturing and general equipment manufacturing,and enterprises with higher R&D proportion can be given greater financial support.It is suggested that the industries supported by tax incentives should be agricultural and sideline food processing industry and pharmaceutical manufacturing industry,and only those enterprises whose R&D accounts for a higher proportion of total assets should be given tax incentives.In addition,for those enterprises whose R&D accounts for a lower proportion in these two industries and all enterprises in other industries,it is suggested that tax incentives be reduced and tax incentives be gradually replaced by financial subsidies.