Tax Reduction,Institutional Environment And Corporate Investment

As the core of enterprise activities,investment is one of the important sources of profit and the main driving force for economic growth.Since 2012,the growth of investment in fixed assets of China is gradually decline.Because of enterprises as the core of investment,how to decipher restricting enterprise investment barriers,reverse the decline in investment growth has become the government and social hot topic of concern.The comprehensive study on the basis of relevant research results at home and abroad,combined with China's business investment,enterprise income tax reform and the reality,system and environment by using taian database from 1998 to 2013 countries listed company data,using the double difference method and instrumental variable method,empirical research on the tax reduction and environment's influence on the enterprise investment behavior respectively,and puts forward the corresponding policy recommendations.The first part of the thesis first explains the background and research significance of the topic,and then summarizes the relevant research results of tax and institutional environment in macro and micro aspects.The second part,puts forward the research ideas and hypotheses of this paper,explains the sample source and data screening methods,designs the relevant models and selects the required explanatory variables,explanatory variables and control variables,etc.Perform a simple descriptive statistic on it.The third part first examines the impact on corporate investment behavior and investment efficiency from the single point of tax reduction.The enterprise income tax reform in 2008 is selected as the quasi-natural experiment shock,and the enterprises with the tax rate unchanged at 15%before and after the reform are used as the control group.Enterprises with a tax rate reduced from 33%to 25%as an experimental group,using the double difference method for empirical research;however,the investment of enterprises is affected by many aspects,so this paper then considers its investment behavior and investment from the perspective of institutional environment.According to the influence of efficiency,the history of the opening and closing of the provincial capital cities was introduced as an instrumental variable for empirical analysis,and the corresponding robustness test was carried out.The fourth part summarizes the results based on the previous results,analyzes the conclusions,and proposes corresponding policy recommendations to improve corporate investment and promote healthy economic growth.The research in this paper shows that tax reduction can significantly promote enterprise investment,and can effectively restrain the non-efficiency investment of enterprises,but the tax reduction policy only has short-term promotion effect and there is a certain lag.Therefore,it is not enough to promote corporate investment only by tax reduction policy.However,in the context of global economic integration,tax reduction can revitalize the enterprise and enhance the competitiveness of enterprises.The importance of tax reduction policy cannot be ignored.So,is there a relevant factor that can promote corporate investment in the long run?The empirical results of the influence of institutional environment on corporate investment behavior show that the improvement of institutional environment can significantly promote corporate investment.In terms of corporate performance,the improvement of institutional environment can not only inhibit the inefficient investment of enterprises,but also significantly improve the business performance of enterprises.Improvements in the institutional environment can also promote corporate investment in the long run.Therefore,this paper suggests that the government should pay attention to the use of taxation policies,reduce the degree of government intervention,strengthen the legalization process,create a healthy development atmosphere for product markets and factor markets,and provide a good guarantee for the marketization of basic resource allocation;Intermediary organizations,creating a good legal system environment.