TITLE:
Whether Tax Preference Promotes Innovation in Enterprises?
AUTHORS:
Zhenguang Huang
KEYWORDS:
Tax incentives, Corporate Innovation, Propensity Score Matching, Linear Regression
JOURNAL NAME:
Modern Economy,
Vol.10 No.2,
January
31,
2019
ABSTRACT:
This paper firstly analyzes the impact and mechanism
of tax incentives on corporate financing, innovation investment and innovation
output. Secondly, 1311 observations were selected from A-share listed companies
as samples, and the propensity score matching method was used to empirically
test the net effect of tax incentives on enterprise innovation. Thirdly, it uses linear regression model to analyze the factors
affecting the level of innovation of enterprises. The results show that tax
incentives have no significant effect on corporate financing and innovation
output, but they have a significant role in promoting corporate innovation
investment. And the scope of current policy is accurate
and efficient. If the preferential treatment spreads to more enterprises, it can also promote its
innovation investment to a certain extent, but the average promotion efficiency
of preferential policies will be significantly reduced. Finally, it proposes
policy recommendations to promote the innovation vitality of enterprises from
the aspects of stimulating external innovation investment, perfecting personnel
training preferential policies and tracking and evaluation of policies later.