Research On The Impact Of Financial Subsidies And Tax Incentives On The Growth Of Environmental Protection Enterprises

With the development of economy,more and more resources are consumed,and the excessively extensive economic growth mode makes environmental problems increasingly prominent.Water pollution,air pollution and other problems occur frequently,so China advocates the transformation of the economic development mode,to build a resource-saving,environmentally friendly society.As one of the emerging pillar industries in China,environmental protection industry has a very broad industrial development prospect.Since the 12 th five-year plan,China has gradually established the strategic position of environmental protection industry.Generally speaking,China’s environmental protection enterprises include those engaged in the production and operation of environmental protection products,environmentally friendly products,resource recycling products and environmental protection services.In order to promote the high-quality development of environmental protection enterprises and the whole industry,the Chinese government has adopted a variety of incentive measures to support environmental protection enterprises,among which financial subsidies and tax incentives are most widely used.However,there is still a debate about whether the fiscal subsidy and tax preference can really promote the growth of environmental enterprises,and the difference of the incentive effect produced by these two means.From the theoretical and empirical perspectives,this paper analyzes the impact of current fiscal subsidies and tax incentives on the growth of environmental protection enterprises,so as to further enrich relevant research in the field of environmental protection industry,and to provide certain help and reference for the government to formulate and improve fiscal and tax policies that help environmental protection enterprises to grow.The research framework of this paper is roughly as follows:The first chapter firstly introduces the research background and research significance of topic selection,and then reviews the domestic and foreign about the environmental protection enterprise growth,financial subsidies and preferential tax incentive effects research from several aspects of research literature,expounds the different domestic and foreign scholars for fiscal subsidies and preferential tax incentive effects,and on the basis of summarizing the related literature at home and abroad has carried on the literature review.Then,the research contents,basic research framework and methods of this paper are described.Finally,the possible innovations,shortcomings and prospects of future research are introduced.The second chapter expounds the mechanism analysis of financial subsidies and tax concessions affecting the growth of environmental protection enterprises.Firstly,the concepts related to this study are defined,including environmental protection enterprises,financial subsidies and tax incentives,as well as important concepts such as enterprise growth and growth measurement methods.Then it introduces the theoretical basis of the influence of financial subsidies and preferential tax policies on the growth of environmental protection enterprises,mainly including five theories,namely,public goods theory,externality theory,endogenous growth theory,Keynesian state intervention theory and enterprise growth theory.Finally,the paper studies the different incentive paths that the fiscal and taxation policies of environmental protection industry influence the growth of environmental protection enterprises.The third chapter analyzes the current situation of environmental protection industry and its policies.Including the development status of environmental protection industry and the analysis of relevant financial subsidies and tax incentives.This chapter first briefly introduces the development status,characteristics and layout of China’s environmental protection industry.Then it lists the current financial subsidy policies and tax preferential policies of China’s environmental protection industry,and analyzes the policy characteristics based on the environmental protection industry.The fourth chapter introduces the empirical research on the influence of financial subsidies and preferential tax policies on the growth of environmental protection enterprises.Firstly,the research hypothesis is put forward according to the theoretical analysis of this paper.Based on the sample data of listed companies in China’s environmental protection industry in the past five years from 2014 to 2018,this paper establishes a growth index system of environmental protection enterprises from profitability,debt paying ability,operation ability,development ability,research and development ability of environmental protection enterprises,and obtains a comprehensive growth score of environmental protection enterprises.Then it establishes an empirical model according to the research assumptions,empirically analyzes the impact of tax incentives and financial subsidy policies on the growth of environmental protection enterprises and the difference in incentive effects.Finally,it analyzes the role of marketization process and enterprise nature in this process through grouping regression.Finally,the conclusion of empirical research is summarized.First,there is a significant positive correlation between the tax incentives enjoyed by environmental protection enterprises and their growth,while there is a non-significant positive correlation between the financial subsidies received by environmental protection enterprises and their growth.In contrast,tax incentives have a better incentive effect on the growth of environmental protection enterprises.Second,with the reduction of the degree of marketization in the region where the enterprises are located,the positive impact of fiscal and taxation policies on the growth of environmental protection enterprises is gradually reduced,which has a certain blocking effect.In areas with a high degree of marketization,the fiscal and tax incentive policies of environmental protection enterprises are more significant.Third,the difference in the nature of enterprise property rights will also result in the difference in policy effects between financial subsidies and tax incentives.Compared with state-owned enterprises,fiscal and taxation policies have more significant incentive effects on non-state-owned environmental protection enterprises.The fifth chapter introduces the fiscal and taxation policy suggestions to promote the growth of environmental protection enterprises.Based on the analysis of the current policy situation and the empirical results,this chapter sums up the existing problems of financial subsidies and tax incentives respectively,and puts forward fiscal and taxation policy suggestions to promote the growth of environmental protection enterprises.In terms of financial subsidies,the government needs to optimize the distribution of financial subsidies,appropriately improve the treatment of financial subsidies for non-state-owned environmental protection enterprises,improve the utilization rate of financial subsidies for environmental protection industries and establish and perfect the financial subsidy guarantee system.In terms of tax concessions,the government needs to expand the scope of concessions,increase the intensity of tax concessions for environmental protection industries,strengthen the legality of tax concessions,scientifically design the environmental protection tax concession system,and at the same time implement differentiated preferential policies according to actual regions.The main innovation of this paper lies in choosing the new perspective of environmental protection enterprise growth,combining the unique investment and research and development innovation ability of environmental protection industry,adopting the comprehensive index method to measure the growth of environmental protection enterprise,and comparing the difference of the influence of financial subsidies and tax preferential policies on the growth of environmental protection enterprise.