The Impact Of Punitive And Incentive Tax Policies On Corporate Financing Constraints

China generally adopts compulsory tax policy,government compulsorily collects taxes and enterprises passively pay taxes.However,in face of enterprises with different tax performance,there are two different tax policies,one is the punitive tax policy for enterprises with tax violations,the other is the incentive tax policy for enterprises with good tax credit.In this paper,the research object of punitive tax policy is the listed companies that had major tax violations,and the research object of incentive tax policy is the companies with A tax credit rating published by the State Administration of Taxation.The research time range is 2008-2018,and PSM-DID method is adopted.Based on the two tax policies and the financing problems mentioned by the government for many times,this paper explores the impact of punitive and incentive tax policies on corporate financing constraints.And the impact mechanism is divided into information asymmetry mechanism and reputation mechanism,and the financing constraints are divided into equity financing and debt financing,so as to refine the path of impact and the foothold of impact.Since 2015,the State Administration of Taxation has begun to publish the list of enterprises with A tax credit rating,and the results of the previous year's tax rating published in April every year,so far,it has been published for five years.And the government will take various incentive measures for the enterprises in the list,including facilitating tax collection and so on.At the same time,the government will take measures against the companies with major tax violations,such as tax evasion,etc.The purpose of this study is to explore whether two different tax policies will have completely different effects on corporate financing constraints,and to provide corresponding suggestions for the government to formulate tax policies,as well as for enterprises to decide whether to pay taxes or not.This paper finds that:(1)the incentive tax policy can significantly alleviate the financing constraints of the company,which is mainly achieved through the release of good news to reduce the degree of information asymmetry and the improvement of reputation;(2)the punitive tax policy can significantly intensify the financing constraints of the company,which is mainly caused by the further reduction of the company's reputation;(3)both the incentive tax policy and the punitive tax policy mainly affect the debt financing and has little impact on equity financing.These conclusions show that the government can combine the two policies when making tax policies,so as to improve the credit level and resource allocation efficiency of the market,and the government can further increase the transparency of tax policy implementation.At the same time,it also warns enterprises to pay taxes in good faith,as tax avoidance will further aggravate the financing constraints of companies.