Research On The Impact Of VAT Rebate Policy On Enterprise Value

As the largest tax in China,value-added tax has the characteristics of tax neutrality.Therefore,improving the value-added tax deduction chain plays an important role in promoting the development of China’s economy and society.For a long time,limited by the development level of information technology,China has always adopted the method of carrying forward the amount of value-added tax to the next period,which seriously violates the principle of tax neutrality.In order to adapt to the economic and social development of the new era,China has implemented a large-scale "tax reduction and fee reduction" measure in recent years,focusing on reducing the tax burden of enterprises and reducing the indirect tax burden of enterprises.Therefore,how to refund and how much to refund the value-added tax has become one of the key research topics of a large number of scholars in recent years.Since 2011,in order to promote the development of some industries in China,the government has implemented a series of policies for the tax rebate of value-added tax retention and credit in some industries.Most of the existing studies discuss the causes,scale and improvement methods of value-added tax retention and credit from a theoretical perspective,and only a few literatures take the impact of value-added tax retention and credit policy on enterprise value as the research object.Therefore,taking the value-added tax rebate policy for 18 key industries issued in June 2018 as the starting point,this paper makes an in-depth analysis on the impact of the tax rebate policy on enterprise value by using the methods of normative analysis,empirical analysis and comparative analysis.Firstly,this paper combs the development process of value-added tax system and tax rebate policy since the introduction of value-added tax,and summarizes the current situation of the implementation of value-added tax rebate policy in China.Then it makes a qualitative analysis of the impact of the VAT retention and rebate policy on the enterprise value.Starting from the tax neutrality and tax regulation theory,it is concluded that the tax rebate policy is more in line with the basic principle of tax neutrality,and the tax plays a regulatory role mechanism to enhance the enterprise value.Then,from the perspective of the principle of tax efficiency and the principle of tax fairness,it is analyzed that the value-added tax rebate policy conforms to the basic principles of tax.Finally,from the perspective of cash flow,it is analyzed that the action mechanism of the tax rebate policy on enterprise value,and finally it is concluded that the tax rebate policy can improve the enterprise value by improving the enterprise cash flow level.Then it analyzes the heterogeneity of the impact of the retention tax rebate policy on enterprise value,and puts forward the research hypothesis of this paper.The double difference method is often used in the analysis of policy effects.In order to prove the research hypothesis,this paper regards the value-added tax rebate policy implemented in June 2018 as a quasi natural experiment and constructs a double difference model.Through quantitative analysis,it is concluded that the value-added tax rebate policy can significantly improve the value of enterprises.China is currently in a socialist market economy.In order to adapt to this basic situation,this paper introduces the variable of enterprise property right attribute to deeply explore whether the value-added tax rebate policy has a significant difference in the value promotion of enterprises with different ownership properties.It is found that the value-added tax rebate policy can significantly improve the enterprise value of non-state-owned enterprises.Then,in order to better study the impact of the size of the enterprise on the promotion of enterprise value,this paper takes those larger than the median as the experimental group and those smaller than the median as the control group to explore the difference of the value-added tax rebate policy on the promotion of the value of enterprises of different sizes.After analysis is found that the value growth of large-scale enterprises is more obvious.Through the empirical analysis of different regions,it is found that the enterprise value in the eastern region is more significantly affected by the policy than that in the central and western regions.Through a comprehensive and multi-level in-depth study of enterprises with different ownership properties,different sizes and different regions,this paper verifies the research hypothesis of this paper,and analyzes the action mechanism of value-added tax rebate policy on enterprise value.Finally,it puts forward the policy suggestions of this paper.Firstly,we should strengthen the performance management of the management of state-owned enterprises,so that state-owned enterprises can more fully enjoy the preferential policies.Secondly,establish an effective,fair and law based tax rebate system in the whole industry.In terms of tax rebate conditions,it is proposed to set a minimum tax rebate threshold to increase the tax rebate conditions conducive to start-ups,so that more small-scale enterprises can enjoy preferential policies.In addition,policies should be appropriately adjusted according to the characteristics of economic development in different regions to promote coordinated regional development.