Empirical Study On Effective Tax Rate And Enterprise Performance

Chinese economy is in the transition period of improving quality and increasing efficiency.The fiscal and tax system reform has shifted from "structural tax reduction" to "substantial tax reduction".The new round of tax reform should fully meet the needs of the national supply-side structural reform and innovation-driven development strategy.Tax burden affects the external economy and operating environment of enterprises.Valueadded tax and corporate income tax are the two major taxes faced by Chinese enterprises.Compared with the nominal tax rate,the effective tax rate can better measure the actual tax burden of taxpayers.From the perspective of the innovation ability of enterprises,this paper explores the mechanism of the effect of VAT and the effective tax rate of enterprise income tax on enterprise performance,which provides a theoretical basis for promoting the reform of new tax system and promoting the transformation and upgrading of enterprises.This paper takes the a-share listed companies in Shanghai and Shenzhen from 2010 to 2018 as the research object,establishes the corresponding model according to the principle of intermediary effect,and USES the statistical software R studio as the tool to make an empirical analysis of the research object with the method of step-by-step analysis and Bootstrap confidence interval.First of all,this paper systematically reviews relevant literature at home and abroad,and defines the concept of research object and evaluation index.Then,the relevant theories are analyzed and the research hypothesis is put forward.According to the mediating effect model,the empirical test is carried out from four aspects: effective tax rate and enterprise performance,effective tax rate and innovation ability,innovation ability and enterprise performance,and the mediating effect of innovation ability.Considering the reliability of the empirical results,the independent variable and the dependent variable are replaced by different proxy indexes,and the robustness test is still carried out by the above method.Finally,relevant policy recommendations.The research finds that,first,effective tax rate is negatively correlated with enterprise performance.In the model of the relationship between enterprise income tax and enterprise performance,the higher the effective tax rate is,the lower the performance level of the enterprise will be.For every unit of increase in the effective tax rate,the performance level of the enterprise will decrease by 0.1168.In the model of the relationship between VAT and enterprise performance,for every unit increase in the effective tax rate,the enterprise performance decreases by 0.0598.Second,the effective tax rate of corporate income tax is negatively correlated with the innovation ability.For every unit of the effective tax rate increases,the innovation ability decreases by 0.0150,while the effective tax rate of VAT has a relatively low positive correlation with the innovation ability.Third,innovation ability is positively correlated with enterprise performance.In the model of the relationship between corporate income tax and corporate performance,for every unit of improvement of innovation ability,corporate performance increases by 0.3661;In the model of the relationship between VAT and enterprise performance,enterprise performance increases by 0.4534 for every unit of improvement in innovation capability.Fourth,in the model of the relationship between corporate income tax and corporate performance,innovation ability plays a partial mediating role.The mediating effect size is 4.71%,and the proportion of mediating effect size is 13.07% when the robustness test of substitution variables is carried out.However,in the model of the relationship between VAT and enterprise performance,the result should be interpreted as the masking effect.This paper is different from simply discussing the causal relationship between effective tax rate and enterprise performance,but analyzing its mechanism in depth.According to the research results,this paper draws some inspirations and puts forward some possible policy Suggestions.First,The government should continue to promote the reform of corporate income tax,reduce the effective corporate tax rate,appropriately reduce the corporate income tax rate and improve preferential tax policies.Second,we should further promote VAT reform,speed up VAT legislation,establish a modern VAT system with a wide range of taxation,fewer tax rates and reasonable tax preferences,and rationally distribute VAT revenues at the central and local levels.Third,the tax reduction policy has a strong incentive effect on enterprises' technological innovation activities,and increasing innovation input is the basic condition for enterprises to improve their innovation capacity.The government should strengthen the incentive effect of substantial tax reduction on enterprises' innovation,and further reduce the tax burden of enterprises' innovation activities.