Author(s)

Danfeng Liao

School of Economics, Jinan University, Guangzhou, China.

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.

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

Liao, D. (2016) Impact of Accelerated Depreciation of Fixed Assets Policy on Corporate Financing Behavior—Based on DID, the Empirical Analysis of the Model. Modern Economy, 7, 1025-1034. doi: 10.4236/me.2016.79105.