Research On The Impact Of Tax Incentives On Enterprise Innovation:The Moderating Role Of Financing Constraints

The report of the 20th National Congress of the Communist Party of China has fully deployed to strengthen the main position of enterprise scientific and technological innovation,and if China wants to achieve high-quality development,it must take innovation as the first driving force and constantly transform scientific and technological innovation into productive forces.Enterprises are important forces of market entities and economic and social development,and enterprise innovation has become one of the main sectors of China’s scientific and technological innovation,making significant contributions to national economic development,social progress,national security and the improvement of people’s quality of life.The state attaches great importance to scientific and technological innnovation,and constantly improves the perfection of the capital market system,GEMt registration system is an important measure of China’s capital market market-oriented reform and inclusive development,since its inception,the number of listed companies has continued to increase,the types of industries have been continuously enriched,and the market scale has steadily expanded,realizing the original intention of the capital market to better serve innovative and entrepreneurial enterprises.In order to increase the support for enterprise innovation,the state has successively introduced a series of preferential tax policies,in recent years,China has successively introduced 102 preferential tax policies and measures for the main links and key areas of enterprise innovation,covering the entire life cycle of enterprises.Can these tax incentives really drive the level of innovation in companies?Enterprises must face financing constraints in the process of development,so can preferential tax policies play the same role in the case of different degrees of financing constraints?Based on the above considerations,this paper systematically sorts out and summarizes the literature on tax incentives,financing constraints and enterprise innovation,and explores the impact of tax incentives on enterprise innovation by taking financing constraints and internal and external financing levels as regulating variables.Firstly,this paper uses the data of listed companies on China’s Growth Enterprise Market from 2012 to 2021 to construct a multiple one-time regression model for empirical testing,and analyzes the impact of tax incentives on enterprise innovation.Then,the sample was divided into state-owned enterprises and non-state-owned enterprises,high-tech enterprises and non-high-tech enterprises for heterogeneity analysis.Then,the moderating effects of financing constraints,endogenous sources and debt financing levels on tax incentives and firm innovation are empirically studied.In further research,the relationship between tax incentives and enterprise R&D investment is discussed.Finally,the robustness test is carried out by substitution variable and lagging variable regression method to further verify the reliability of the research conclusion.The results show that:(1)The preferential tax policies have a promoting effect on the innovation input and output of ChiNext enterprises.(2)Compared with state-owned enterprises,the role of tax incentives in promoting the innovation input and output of enterprises is more significant in non-state-owned enterprises.(3)Compared with non-high-tech enterprises,the role of tax incentives in promoting the innovation input and output of enterprises is more significant in high-tech enterprises.(4)Under other conditions being equal,financing constraints have a negative moderating effect on the relationship between tax incentives and enterprise innovation.(5)Under other conditions being equal,the level of domestic debt financing has a positive regulating effect on the relationship between tax incentives and enterprise innovation,and external financing plays a stronger regulating role in the relationship between tax incentives and enterprise innovation input.Finally,according to the research conclusions of this paper,relevant suggestions are put forward from the aspects of government and enterprises.