Research On The Influence Of Tax Preference On The Financing Of Small And Medium-sized Enterprises

Small and medium-sized enterprises are the most active subjects in China’s market economy,accounting for more than 90 percent of all enterprises,producing more than 60 percent of the gross domestic product,contributing more than 50 percent of the total annual tax revenue,and providing more than 80 percent of urban employment.Small and medium-sized enterprises play a crucial role in the economy by creating employment opportunities,driving economic growth,providing innovative products and services,and improving social welfare.However,the problem of "financing difficulties" of Chinese smes has always existed.Especially in recent years,the increasing trade friction at home and abroad,the global COVID-19 outbreak and other risks have brought greater uncertainty to the survival and development of Chinese small and medium-sized enterprises.Can we solve the problem of financing difficulties of small and medium-sized enterprises through preferential tax policies? What is the impact of tax incentives on the financing methods of smes?This thesis studies the above problems.This thesis firstly explains the theoretical basis of the influence of tax preference on the financing of small and medium-sized enterprises,and then explains the current situation of the financing of small and medium-sized enterprises,the preferential tax policy of small and medium-sized enterprises and the insufficiency of the current preferential tax policy.Based on the empirical analysis of the data of smes and GEM related enterprises from 2015 to 2021,this thesis finds that tax incentives have a significant positive correlation with the endogenous financing of smes on the whole.The impact of tax incentives on smes with larger scale is greater and more significant,while the impact on smes with smaller scale is not significant.The influence of tax incentives on equity financing of smes is not significant on the whole;On the whole,tax incentives have a significant positive correlation with the debt financing of smes.The smaller the smes,the greater and more significant the impact is,while the larger the impact is not significant.According to the empirical analysis results of this thesis,if the tax incentives are increased,smes will increase the internal financing and debt financing on the whole,and the change of equity financing is uncertain.For small and medium-sized enterprises,the increase of tax incentives,debt financing will be significantly increased;For large small and medium-sized enterprises,tax incentives will be strengthened,and there will be a significant increase in endogenous financing.Finally,according to the results of the empirical study,in view of the endogenous financing of small and medium-sized enterprises,the author puts forward some policy suggestions on improving depreciation deduction,enhancing the stability of tax preferential policies,and increasing the diversity of tax preferential ways.Aiming at the equity financing of small and medium-sized enterprises,this thesis puts forward some suggestions on broadening the financing channels and giving appropriate tax incentives.Aiming at smes’ debt financing,this thesis puts forward some policy suggestions,such as appropriately raising the deduction standard of debt financing costs,increasing tax incentives for venture capital and financial leasing companies.In addition,it puts forward some policy suggestions to accelerate the construction of financing service platform for smes and improve the tax administration service system for smes.