A Research On Tax Incentive Policy Of Corporation’s Charitable Giving From The Perspective Of Heterogeneity

Charitable donations are the third means of distribution of national wealth.As a balancer to adjust income distribution and reduce the gap between the rich and the poor,they are complementary to the second income distribution such as taxation and government transfer expenditure.There are many reasons for charitable donations,and tax policy is also a powerful lever for promoting charitable donations,which has received widespread attention in countries around the world.Since the reform and opening up,China’s economic construction has achieved world-renowned achievements,the economic scale has reached 100 trillion yuan,the per capita GDP has surpassed 10,000 US dollars,and the foundation for charity development has become increasingly strong.This article takes enterprises as the research object,and from the perspective of heterogeneity,studies how to use tax policies to adjust corporate charitable donations in order to reduce the gap between the rich and the poor and improve social welfare.The research on the relationship between government tax incentives and corporate charitable donations is a relatively mature subject.Studies by scholars at home and abroad have shown that tax policies can promote corporate charitable donations under certain conditions.Based on the same assumptions,this article attempts to make a new exposition on this subject from the perspective of heterogeneity.First of all,the author uses economics theory: corporate social responsibility theory,reputation insurance mechanism motivation,cost---revenue model,profit maximization model,etc.,as the theoretical research support of the article and the motivation of corporate charitable donations,the role of tax policies to promote charitable donations.The mechanism is basically explained.Secondly,from the perspective of heterogeneity,that is,the heterogeneity of enterprise property rights,the heterogeneity of executives and the heterogeneity of regional institutional environment where the heterogeneity of executives is represented by whether the executives have political status and the educational background of the executives the current status of charitable donations from different perspectives in China and the existing relevant tax policies have been sorted out and evaluated.In the empirical test,the author selected listed companies that traded in Shanghai and Shenzhen stock exchanges from2003 to 2018 as the research object,and established a double logarithmic linear regression model to explore the relationship of corporate income tax rate and charity under heterogeneous factors under group regression.Empirical research finds that tax policies have a more significant role in stimulating charitable donation spending for non-state-holding companies,companies with political identities for executives,and companies in areas with developed institutional environments.Therefore,it is concluded that under the heterogeneous conditions,tax incentives have a more significant incentive effect on corporate charitable donation expenditures.The research conclusions of this paper have enriched the research in the fields related to charitable donations,and verified that reasonable taxation policies have a greater incentive effect on charitable donations.Based on the conclusions of this article,we support government departments to take into account factors such as corporate property rights,corporate executives,and the regional institutional environment when adopting taxation policies to adopt differentiated taxation preferential policies.While giving full play to the role of taxation in stimulating corporate charitable donations,it has also played a positive and practical role in the progress of China’s philanthropy.