The Impact of VAT Refund on Remaining Tax Credits on Enterprise Innovation
Abstract
Based on the data of A-share listed companies from 2012 to 2024, this study takes the VAT refund on remaining tax credits policy
implemented in 2018 as a “quasi-natural experiment” and adopts the difference-in-differences (DID) model to explore the impact of this policy on enterprise innovation. The results show that the VAT refund on remaining tax credits policy can promote enterprise innovation. The
main transmission mechanisms are that the policy alleviates enterprises’ financing constraints and improves their risk-taking capacity. Further
heterogeneous research finds that the policy has a significant promoting effect on the innovation capacity of enterprises in high-tech industries, but the effect is not significant in non-high-tech industries; the promoting effect is stronger for enterprises in regions with higher tax
collection and administration intensity than those in regions with lower intensity.
implemented in 2018 as a “quasi-natural experiment” and adopts the difference-in-differences (DID) model to explore the impact of this policy on enterprise innovation. The results show that the VAT refund on remaining tax credits policy can promote enterprise innovation. The
main transmission mechanisms are that the policy alleviates enterprises’ financing constraints and improves their risk-taking capacity. Further
heterogeneous research finds that the policy has a significant promoting effect on the innovation capacity of enterprises in high-tech industries, but the effect is not significant in non-high-tech industries; the promoting effect is stronger for enterprises in regions with higher tax
collection and administration intensity than those in regions with lower intensity.
Keywords
VAT Refund on Remaining Tax Credits; Enterprise Innovation; Financing Constraints; Risk-Taking; Tax Collection and Administration
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PDFReferences
[1] Cai Weixian, Shen Xiaoyuan, Li Bingcai, et al. The Innovative Incentive Effect of the VAT Credit Refund Policy [J]. Fiscal Research, 2022, (05):31-48.
[2] Cui Huiyu, Tian Mingrui, Wang Qian. Does the VAT Credit Balance Suppress Corporate R&D Investment? [J]. Finance and Trade
Economics, 2022, 43(08):59-73.
[3] Deng Liping, He Qiao, Wang Zhixuan. Research on the Impact of Corporate Tax Burden on Innovation under the Background of
Tax Reduction and Fee Reduction [J]. Economic and Management Review, 2020, 36(06):101-111.
DOI: http://dx.doi.org/10.18686/fm.v10i6.14346
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