The Influence Of Corporate Income Tax Incentives On Business Performance Of General Equipment Manufacturing Enterprises

The operating performance of an enterprise refers to the operating benefits generated by an enterprise during a certain operating period,which are mainly reflected in the profitability,operating capacity,economic growth and debt risk status of the enterprise.At present,China’s manufacturing industry on the whole is developing very rapidly.In 2021,the added value of the manufacturing industry reaches 31.4 trillion yuan,accounting for nearly 30% of the global total.General equipment manufacturing’s operating revenue increased 17.33% from 2020.However,there are also many practical problems,which have put forward challenges to our economic development.Although the industrial base is growing larger,the overall science and technology content is not high,and the technology of developed countries is far apart.The cultural quality of employees is not high on the whole,and there is a lack of necessary skilled workers,and there are few independent products.In 2015,China proposed for the first time the implementation of "Made in China2015",which aims to adhere to innovation-driven,intelligent transformation,strengthen the foundation and green development,and accelerate the transformation from a large manufacturing country to a strong manufacturing country.In the general environment of the structural reform of the supply side,how to meet market demand,expand effective supply,improve enterprise management performance and promote the development of Chinese manufacturing industry is the main problem our country faces.Tax incentives are commonly used in various countries to reduce the tax burden of enterprises and an important way to achieve economic goals.They can enable the government to play the role of "tangible hand",guide the reasonable allocation of social resources,promote the adjustment of social and economic structure,and make up for the defects and deficiencies of the market.The government can indirectly guide enterprises to improve their business performance through technological progress through preferential tax policies.Therefore,this paper takes the intensity of R&D investment as the intermediary variable to study the impact of the government’s tax incentives on the business performance of enterprises from this perspective.By combining literature with empirical research,this paper firstly introduces relevant domestic and foreign literature on the impact of tax incentives on business performance of enterprises,and reviews part of the tax incentives policies of manufacturing industry in recent years.It also expounds theoretical knowledge such as enterprise cost theory and enterprise innovation theory,so as to provide theoretical basis for subsequent research.Then,from the perspective of the impact of tax incentives on business performance and the mediating effect of R&D investment,the model was developed and the hypothesis was put forward,and then stata was used for empirical test.Based on the industry classification of listed companies of China Securities Regulatory Commission,this paper selects A total of828 observed values of 138 A-share listed companies of general equipment manufacturing industry from 2014 to 2019.Multiple regression method was used to analyze the correlation between tax incentives,R&D input and business performance of enterprises in the current period,one period lag and two periods lag.Stepwise test and bootstrap test were used to study the mediating effect of R&D input of enterprises.This paper studies the relationship among tax incentives,business performance of general equipment manufacturing industry and R&D input of enterprises.It can be concluded that:(1)Tax incentives can promote business performance of enterprises and reduce the actual tax burden of enterprises;(2)According to the enterprise cost theory,tax incentives can indirectly reduce the cost of enterprise research and development,stimulate the innovation enthusiasm of enterprises and increase their investment in enterprise research and development;(3)The intensity of R&D investment plays a partial intermediary role in the relationship between tax incentives and business performance,with the intermediary effect accounting for about 27.49% of the total effect;(4)R&D investment has a relatively large lag on the business performance of enterprises,which indicates that enterprises cannot produce immediate results after investing a large amount of human,material and financial resources in R&D,and there is a long process of effect.Finally,practical suggestions are put forward based on the above situation: for the government,(1)increase the intensity of preferential tax policies,(2)adjust preferential tax policies according to the differences of enterprises,and(3)build a collaborative platform for industry-university-research to help enterprises develop.Improve the relevant laws and regulations of tax preferential policies,constantly improve the service function of the government,more importantly,strengthen the implementation of the system,optimize their own service mode.For enterprises,(1)increase R&D investment,(2)strengthen the scientific research team,and(3)improve the quality of R&D output.Consciously obey the government’s management,rational use of government policies,to help the development of enterprises.