TITLE:
The Relationship between Income Tax Burden and R & D Investment of High-Tech Enterprises
AUTHORS:
Mengyao Zheng
KEYWORDS:
R & D Investment, Industry Dependence
JOURNAL NAME:
Modern Economy,
Vol.10 No.3,
March
20,
2019
ABSTRACT: This paper takes 162 Chinese high-tech listed
companies as samples to study the relationship between corporate income tax
burden and R & D investment in short-term and medium-term. Then selects
electronic information industry and aerospace industry to make corresponding
descriptive statistics and regression analysis to test whether the corporate
income tax burden is affected by the industry’s R & D investment, and further verify whether
the relationship between corporate income tax burden and R & D investment
is consistent with the industry-wide analysis results. It compares tax burden dependence in different industries. The empirical finding:
whether in the short-term or medium-term, reducing the corporate income tax
burden can promote the company’s R &
D investment, and in the medium term performance is more significant. The
regression analysis of the electronic information industry and the aerospace
industry also verified this result and found that reducing the tax burden on
the aerospace industry’s R &
D investment is stronger than the electronic information industry.