Research On The Impact Of Tax Reduction And Fee Reduction On Debt Financing Cost Of Enterprises

In order to deal with the impact caused by the economic crisis in 2008,the government implemented a structural tax reduction policy of "expanding domestic demand and ensuring growth".Then,tax reduction has been taken as an active fiscal policy and played an important role in regulating the economic cycle.In 2016,the official and comprehensive implementation of the "replacing business tax with value-added tax" policy and the further promotion of supply side structural reform pushed China’s tax reduction policy to a climax.In the following years,the government successively issued various tax reduction and fee reduction policies,and the new tax reduction and fee reduction continued to rise,striving to implement the burden reduction of enterprises.The production and operation results of the enterprise should be shared with the government as part of the tax.Similar to the dividend method of creditors and shareholders,the government can also be regarded as the stakeholders of the enterprise.The adjustment of tax policy changes the requirements of the government as a stakeholder.Enterprises will change their financing decisions to adjust the resource combination between the government and other stakeholders such as creditors in order to coordinate the requirements of all parties.Debt financing is one of the important ways for enterprises to obtain external financing and the capital driving force for enterprises to obtain various factors of production.Financing constraints and high debt financing costs have always been important problems for enterprises.In addition,the current economic downturn and the frequent occurrence of the COVID-19 have further squeezed the living space of enterprises.Tax reduction and fee reduction directly or indirectly affect the debt financing cost of enterprises through tax rate reduction,tax credit,cost deduction,accelerated depreciation,tax preference and other ways.This can further reduce enterprise costs,accumulate cash flow,stimulate production vitality,improve the supply structure and quality level of enterprises,and contribute to the important goal of supply side structural reform and high-quality development.Based on the corresponding literature and theoretical research,this thesis analyzes the mechanism of tax reduction and fee reduction to reduce the cost of debt financing from the two aspects of creditors and debtors,introduces the current situation and puts forward the existing problems.In terms of empirical analysis,taking the A-share listed companies as the research object,this thesis uses the method of multiple linear regression to test the impact of tax reduction and fee reduction on debt financing costs from 2011 to 2020.At the same time,the heterogeneity of grouped samples under different property rights,different enterprise sizes and different collection and management levels is analyzed.In addition,in order to ensure the reliability of the empirical research results,the robustness test is carried out by changing variables and using only manufacturing industry samples.Finally,using the intermediary effect model for reference,this thesis selects four indicators: cash flow,enterprise value,capital turnover speed and financialization to test whether they play a mechanism role in the impact of tax reduction and fee reduction on enterprise debt financing cost.It is found that the tax burden is positively related to the debt financing cost of enterprises.The greater the tax burden,the higher the debt financing cost of enterprises.Tax reduction and fee reduction can effectively reduce the tax burden of enterprises,so as to significantly reduce the cost of debt financing and alleviate the financing constraints.The results of heterogeneity analysis show that under the background of tax reduction and fee reduction,the debt financing cost of state-owned enterprises is more obvious than that of private enterprises.At the same time,the effect of tax reduction and fee reduction on debt financing cost is more significant in large-scale enterprises and enterprises in areas with high collection and management level than in small-scale enterprises and enterprises in areas with low collection and management level.Mechanism test shows that tax reduction and fee reduction can reduce the cost of debt financing through cash flow,enterprise value,capital turnover speed and financialization.