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.
Highlights
In the context of economic globalization, the exchanges between countries have become increasingly close, and competition has become more and more fierce
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
Based on the combing research of the existing literature and the related innovation theories such as Schumpeter’s growth, this paper believes that the R & D investment of high-tech enterprises is negatively correlated with the income tax burden
Summary
In the context of economic globalization, the exchanges between countries have become increasingly close, and competition has become more and more fierce. The total amount of R & D investment in China has increased from 371.02 billion Yuan in 2007 to 176.61 billion Yuan in 2017. In 2017, the country invested a total of 176.61 billion Yuan in research and experimental development (R & D). Among the industrial enterprises above designated size, there are 8 major industries had been invested in research for more than 50 billion Yuan as shown in Figure 1 below. The proportion of these eight industries accounted for 65.2% of the total, and there are only two industries with R & D intensity over 2%. Using Schumpeter’s innovation theory, Solo model theory, etc., through correlation test, Hausman test, fixed-effect model regression to verify whether the tax burden of high-tech enterprises and R & D investment are related
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