The Ministry of Finance, State Administration of Taxation (2014) The Notice to Perfect the Policy of Enterprise Income Tax about Accelerated Depreciation of Fixed Assets.

has been cited by the following article:

• TITLE: Impact of Accelerated Depreciation of Fixed Assets Policy on Corporate Financing Behavior—Based on DID, the Empirical Analysis of the Model

  AUTHORS: Danfeng Liao

  KEYWORDS: Accelerated Depreciation, Financing, Difference-in-Difference, Manufacturing Industry

  JOURNAL NAME: Modern Economy, Vol.7 No.9, August 25, 2016

  ABSTRACT: For the manufacturing industry transformation and upgrading, the policy implementation of accelerated depreciation of fixed assets has an important influence. Through the choice of Listed Companies in Shanghai and Shenzhen financial data, we use the difference-in-difference model to verify the hypothesis. From the micro level of enterprises, we analyze how the fixed assets accelerated depreciation policy influences the corporate financing behavior. The study finds that the financing behavior is significantly influenced by the policy, and can effectively stimulate “cash flow” of enterprises and reduce the proportion of debt financing. And it is also conducive for the manufacturing industry to reduce the cost of capital and optimize the industrial structure. This paper supports the implementation of the policy, and provides a basis for the tax reform of depreciation policy.