Abstract
Existing studies have shown that VAT reform stimulates business investment. In this paper, civil engineering firm are taken as samples to study whether the reduction of VAT will stimulate the investment of civil engineering firm by referring to the domestic and foreign literature related to enterprise investment in tax reform.
Highlights
Tax reform leads to an increase in cash flow from operating activities, which is conducive to stimulating enterprise investment, promoting technological innovation, upgrading of industrial structure and transformation of economic growth mode
Many scholars study the impact of VAT transformation on enterprise investment, and the research shows that there is a positive correlation between VAT transformation and enterprise investment
When studying the impact of tax reduction on enterprise investment, this paper controls the impact of net profit Growth rate, which is denoted as Growth;(5) In order to distinguish the influences of different industries and years, the variables of industry and Year were virtualized, which were recorded as IND and Year respectively
Summary
Tax reform leads to an increase in cash flow from operating activities, which is conducive to stimulating enterprise investment, promoting technological innovation, upgrading of industrial structure and transformation of economic growth mode. Many scholars study the impact of VAT transformation on enterprise investment, and the research shows that there is a positive correlation between VAT transformation and enterprise investment. Due to the continuous promotion of VAT reduction in recent years, VAT plays a more important role in the economic development of Chinese enterprises. Compared with non-stateowned enterprises, state-owned enterprises will get more financial support due to government intervention, and the relatively loose financing environment may make their investment behavior different from that of nonstate-owned enterprises. It is of certain theoretical and practical significance to study the investment behaviors of enterprises with different property rights under the background of VAT reduction. This paper takes the system engineering as a sample, based on the national conditions and institutional background of China, to study whether the VAT reduction has promoted the investment of engineering enterprises
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