Study On The Impact Of Adjustment Of Income Tax Donation Deduction Policy On Corporate Donation Behavior

Corporate philanthropy is an important part of the cause of common wealth in socialism with Chinese characteristics.In recent years,Chinese enterprises have taken the initiative to assume social responsibility and actively participate in social philanthropy,and corporate donations have continued to rank first in terms of social donation contribution for many years.After the adjustment of the corporate income tax donation deduction policy in 2008,did China’s listed enterprises raise their donation expenditures for consecutive years because they were affected by the policy adjustment? To verify the policy impact,this paper uses data of Chinese A-share listed enterprises from 2003-2016 and constructs a double difference model as well as a moderating effect model to test the impact of the adjustment of the corporate income tax donation deduction policy on the donation of listed enterprises in China and the transmission pathway,considering that there are differences among listed enterprises,this paper also conducts heterogeneity analysis from the perspectives of enterprise asset size,years of listing and nature of ownership.The paper attempts to analyze the impact of the adjustment of the corporate income tax donation deduction policy on the donation behavior of listed enterprises from a multi-dimensional perspective.The results of the empirical study show that:(1)on the whole,the adjustment of corporate income tax donation deduction policy has a significant positive effect on the donation behavior of listed enterprises in China.Under the incentive of new donation deduction regulations,listed enterprises tend to expand donation expenditure;(2)financing constraints play a significant positive moderating role in the process of adjustment of EIT deduction policy affecting listed enterprises’ donation;(3)from the perspective of listed enterprises’ asset size,compared with listed enterprises with smaller asset size,adjustment of EIT deduction policy has a more significant effect on donation of listed enterprises with larger asset size(4)From the perspective of listed enterprises’ years of listing,compared with listed enterprises with shorter years of listing,the adjustment of corporate income tax donation deduction policy has a more obvious effect on the donation of listed enterprises with longer years of listing;(5)From the perspective of listed enterprises’ property rights,compared with state-owned listed enterprises,the adjustment of corporate income tax donation deduction policy has a more obvious effect on the donation of non-state-owned listed enterprises.(5)from the perspective of the nature of listed enterprises’ ownership,the adjustment of corporate income tax donation credit policy has a more obvious effect on the donation expenditure of non-state-owned listed enterprises than that of state-owned listed enterprises.The policy recommendations of this research:(1)further improve the corporate income tax donation deduction legal documents.Our government should collate and consolidate all laws and regulations related to corporate donation deduction policies,and accelerate the formation of a special corporate donation law to encourage and guide all types of enterprises to carry out donations;(2)improve the incentive of corporate donation deduction.In terms of pre-tax deduction rate,it is recommended that the pre-tax deduction ratio for corporate donations be appropriately increased,and a higher pre-tax deduction ratio can be set separately for non-state enterprises;in terms of carryover years,the government can refer to the experience of other countries to appropriately extend the carryover years,and accordingly,a longer carryover year can be set separately for non-state enterprises;(3)the implementation of field differentiated pre-tax deduction ratio.Our government can implement differentiated pre-tax deduction ratios for different charitable fields to guide the flow of corporate donation expenditures into the fields that need more funds.For emergencies,the government can establish a higher pre-tax deduction ratio to further stimulate listed companies to donate and better match the direction of national development.