The Impact Of Tax Burden On Corporate Investment

In recent years,due to the complex situation at home and abroad,the rate of China's economic growth is tapering off.In May 2014,the chairman Xi jinping proposed that China's economy has entered a period of new normal during his visit to Henan province.The slowdown in economic growth has brought a series of problems to our society,of which the most obvious negative impact is the increasing pressure on employment.On one hand,fresh graduates are hard to find a job,on the other hand major enterprises are also constantly reporting layoffs.In the case of insufficient impetus for economic environment,how to stimulate economic vitality and find new sources of economic growth is a problem of great concern to the whole country.From where I am standing,to solve this problem,we should issue relevant policies on investment,consumption and export which are known as “3 carriages” driving economic growth.This paper chooses investment to study,because investment has always maintained a high contribution rate to China's GDP.In addition,tax burden,as an important cost of enterprises,is an important factor affecting the cash flow,net profit and investment of enterprises.Many countries take tax policy as an important tool to adjust the investment behavior of enterprises.Therefore,it's worth to be studied from the realistic aspect.On this basis,using the data of listed companies in Chinese A stock market from 2008 to 2017,the paper studies the impact of tax burden on corporate investment through OLS.Model and Fixed Effect Model.The results shows :(1)When the total tax burden rises,the total investment of enterprises will decrease,and there is a negative correlation between the two;(2)the total tax burden has a greater inhibitory effect on capital expenditure than equity expenditure.When the tax burden rises,enterprises are more inclined to reduce capital expenditure;(3)the negative impact of income tax burden on enterprise investment is greater than that of VAT,which is positively correlated with the total investment of enterprises.The following parts of this paper will present as bellow.The first part introduces research background,ideas and methods,as well as innovation points and deficiencies.The second part,which is Chapter Two and Chapter Three,includes literature review respectively and theory analysis.The next part,Chapter,Four and Chapter Five,the empirical analysis,which is the most important part in this paper.First of all,proposing hypotheses,selecting variables and screening samples.Then,the econometric model is applied to conduct an empirical study on the data of A-share listed companies from 2008 to 2017.The last part is the conclusion and enlightenment.Firstly,summarize the previous research,and then put forward enlightenment and Suggestions on the basis of summary and analysis.