Financial And Tax Policies,Financial Slack And Corporate Technology Innovation

The new round of technological revolution and industrial change is developing deeply,and innovation-driven has been the general trend.However,the long periodicity,high risk,high cost,high uncertainty and high spillover of technological innovation have seriously dampened the enthusiasm of enterprises in technological innovation,and led to the market failure.In order to solve this problem,governments around the world often extend their "visible hands",use government funds and implement various tax incentives to directly intervene in the technological innovation market,share the cost of technological innovation and stimulate enterprises to invest in R&D.However,whether the finance and taxation incentive policies really work is controversial both in theory and in government practice.Based on this,this study uses the data of listed companies in the 13 th Five-Year Plan period to explore the relationship between various finance and taxation policies and enterprise technological innovation,so as to further clarify the relationship between them in a special period and background.This paper firstly sorts out and summarizes the various finance and taxation policies implemented during the 13 th Five-Year Plan period from the perspective of micro-enterprises,and clarifies the ways and directions of government funds injected into micro-enterprises.Then we sorted,summarized and concluded the relevant literature.Finally,combining market failure and government intervention theory,technology innovation theory and externality theory,we research the relationship between finance and taxation incentive policies and enterprise technology innovation by using normative research and empirical analysis.The research findings are as follows.First,financial subsidies,tax return and income tax preferences have a significant positive impact on enterprise technological innovation.Second,the policy effects of financial subsidies,tax return and income tax preferences are closely related to the degree of financial slack of enterprises themselves.Specifically,the higher the degree of enterprise financial slack(including available financial slack and potential financial slack),the weaker the positive impact of financial subsidies and tax return policies on technological innovation.The higher the degree of available financial slack of enterprises,the stronger the positive impact of preferential income tax policies on technological innovation.Third,the study on enterprise heterogeneity found that: in the case of considering the nature of property rights,government financial and taxation policies have a significant positive impact on the independent R&D investment for all types of firms.However,the positive effect of the tax return on the investment of R&D personnel in the non-state group is a bit more obvious.In the case of considering the regional differences,subsidies and tax return have positive impacts on independent R&D investment of enterprises in various regions,while the promotion effect of income tax preferences on the independent R&D investment in the western region is not significant.In the case of considering the competitive market environment,the higher the level of competition a company faces in the market,the stronger the incentive effect of financial subsidies and income tax policies.But the degree of market competition has no significant influence on the effect of tax refund policy.To sum up,based on the micro-enterprise perspective,this study explores the relationship between the government’s finance and taxation policies and enterprise’s technological innovation in a special period,and investigates the regulating function of the enterprise’s own financial slack level.And discusses the influence of regional differences,market competition environment and property rights on the relationship between them,and enriching the research on the related fields of fiscal and taxation innovation incentives in China.Besides,combined with the conclusion,this study gives recommendations for government to appear more targeted and more reasonable finance and taxation incentive policies.