Asset Liquidity,Tax Enforcement And Technological Innovation

This paper takes all A-share listed companies from 2009 to 2017 as samples.Firstly,we use fixed-effect model to empirically study the impact of asset liquidity and tax enforcement on technological innovation.The study finds that the improvement of asset liquidity can stimulate technological innovation of enterprises,while the strengthening of tax enforcement can reduce the level of technological innovation of enterprises.Asset liquidity will ease financing constraints in two ways: firstly,the increase of asset liquidity will increase the mortgage value of enterprises,thereby reducing the external financing cost of enterprises;secondly,it will help enterprises to cash assets quickly at a reasonable price when necessary,and then stimulate technological innovation of enterprises.Among the various influence channels of tax enforcement on technological innovation,the dominant one is the capital channel.That is to say,with the strengthening of tax enforcement,enterprises need to fully consider the amount and time of cash outflow,and the supply of funds for R&D will be constrained,which will have a negative effect on technological innovation of enterprises.Then,the paper studies the regulatory effect of tax enforcement mechanism on the relationship between asset liquidity and technological innovation.It is found that the stronger the tax enforcement,the stronger the positive correlation between enterprise asset liquidity and technological innovation.This is mainly due to the fact that capital plays a decisive role in technological innovation.In areas with stronger tax enforcement,enterprises have greater financial constraints,and their technological innovation behavior is more sensitive to capital.At this time,if the liquidity of enterprises' assets increases and the cost of external financing decreases,enterprises can be more obviously encouraged to make technological innovation decisions.Finally,we study the relationship among asset liquidity,tax enforcement and technological innovation in different types of enterprises.We find that there are obvious differences between state-owned enterprises and non-state-owned enterprises.In terms of the positive relationship between asset liquidity and technological innovation,nonstate-owned enterprises are more sensitive than state-owned enterprises in terms of stimulating technological innovation by asset liquidity and enhancing the positive relationship between asset liquidity and technological innovation by tax enforcement.This shows that compared with state-owned enterprises,non-state-owned enterprises have higher financing costs and face higher financing constraints.Therefore,after reducing external financing costs,asset liquidity plays a stronger role in promoting technological innovation.However,the negative impact of tax enforcement on technological innovation is that state-owned enterprises are higher than non-stateowned enterprises.This may be due to the fact that compared with non-state-owned enterprises,the managers of state-owned enterprises are more conservative and cautious when dealing with mandatory tax with rigid amount and time,so the investment in technological innovation has been greatly reduced.This paper not only enriches the research results of asset liquidity,tax enforcement and corporate technological innovation to a certain extent,but also demonstrates that in the process of strengthening tax enforcement in China,the guarantee of asset liquidity has more significance for corporate technological innovation.Therefore,our country not only needs to further improve the asset market,to ensure the convenience of enterprise financing with assets,and then promote technological innovation;but also needs to increase tax incentive policies of technological innovation,which can reduce the negative impact of tax enforcement on technological innovation to a certain extent.In addition,different methods should be adopted to stimulate innovation in enterprises with different property rights.