The impact of tax and fee reduction on enterprise financialization—a quasi-natural experiment based on "replacing business tax with value-added tax"

Abstract

Tax reduction and fee reduction is an important measure to increase the impetus of economic and social development and support the long-term healthy development of real enterprises, which has an important impact on the business strategy of enterprises. Under the background of tax reduction and fee reduction and enterprises "shifting from real to virtual", this paper takes the implementation of replacing business tax with value-added tax as A quasi-natural experiment, and uses the data of all Chinese A-share listed companies from 2009 to 2015 to investigate the impact of tax reduction and fee reduction on enterprise financialization through the DID model. Moreover, the corresponding robustness test is carried out. The research shows that tax and fee reduction can not only directly reduce the tax burden of enterprises, but also have positive significance to restrain the level of enterprise financialization and promote the development of the real economy. It provides experience for the subsequent implementation of tax and fee reduction policies, and also provides reference for regulators to take reasonable measures to prevent and defuse financial risks.