The Impact Of Tax Incentives And Financial Subsidies On Inefficient Investment In Energy Conservation And Environmental Protection Industries

With the continuous and rapid development of China's economy and the continuous progress of industrialization and urbanization,the problem of environmental pollution is becoming more and more serious,and more and more attention is paid by the state and the people.Energy conservation and environmental protection permeate all walks of life.The contribution of energy conservation and environmental protection industry to economic transformation will be more and more great.It can become an important industry to improve the level of economic technology,promote the adjustment of industrial structure and promote economic growth.Investment decision-making is the core activity of enterprise financial decision-making and an important issue affecting the value of all listed companies.The development of energy-saving and environmental protection industry largely depends on the promotion of government policies.Therefore,this paper studies the influence of the two fiscal and tax incentive policies,tax preference and financial subsidy,on the inefficient investment in energy conservation and environmental protection industry,expands the scope of the research on the inefficient investment,and also provides some reference for the Chinese government to comprehensively use the tax preference and financial subsidy policies to improve the inefficient investment in energy conservation and environmental protection industry.Combined with the current fiscal and tax policies for the energy conservation and environmental protection industry in China,the main topic of this paper is how tax preference and financial subsidy affect the inefficient investment in the energy conservation and environmental protection industry,and how to influence the over investment and the under investment respectively.This paper selects listed companies of energy conservation and environmental protection industry as the research sample.Considering the years when most companies can provide complete data,I decide to select the financial data of these listed companies from 2014 to 2018 for related analysis,and draw the following conclusions:(1)for energy conservation and environmental protection industry,tax preference has a significant positive effect on alleviating the problem of insufficient investment of enterprises.(2)For the energy conservation and environmental protection industry,financial subsidies can effectively alleviate the problem of insufficient investment of enterprises.Moreover,because of the stronger pertinence of financial subsidies,the effect of financial subsidies on the alleviation of insufficient investment is better than tax preference.(3)No matter tax preference or financial subsidy policy,they have no significant impact on alleviating the over investment of enterprises.The government's support for energy conservation and environmental protection industry is more effective in alleviating the lack of investment.The role of guiding enterprises' investment behavior,investing according to the government's intention after receiving subsidies,and reducing blind investment behavior can not be reflected.This is the part that needs to be strengthened in the implementation of relevant fiscal and tax policies,and the integrity of fiscal and tax policies needs to be strengthened.Finally,based on the relevant theoretical analysis and empirical results and the conclusions drawn from them,this paper respectively puts forward some policy suggestions from the perspective of the government and the enterprise itself,such as increasing the financial and tax policy preferences for small and medium-sized enterprises,optimizing the financial and tax policy structure,improving the flow control of financial and tax funds,and improving the internal governance structure of enterprises,so as to truly enable the government and enterprises to form a perfect cooperation and improve the incentive effect of fiscal and tax policies effectively.No matter the problem of under investment or over investment,can be fundamentally solved.I hope that this study can have some practical value.