The Impact of Tax and Cutting Taxes and Fees on Enterprise Innovation——Based on 2017-2021 Panel Data of China's A-share Listed Companies

Abstract

At present, tax reduction is an important national policy to promote enterprise development based on the current economic environment, and its policy implementation targets a wide range of coverage and has received wide attention from all walks of life. In order to investigate whether tax reduction can promote enterprise innovation and what effect it has on enterprise innovation. Based on a systematic review of the literature, this paper uses the panel data of Chinese A-share listed companies from 2017-2021 as a sample, and firstly, uses a multiple regression model to examine the impact of tax reduction on enterprise innovation; Secondly, the moderating variable, degree of marketisation, is introduced to examine the impact of tax cuts on business innovation under different degrees of marketisation; finally, a heterogeneity analysis is conducted to examine the regional and industry heterogeneity of the impact of tax cuts on business innovation. The study finds that tax and fee reductions can effectively promote enterprise innovation, with different effects in different regions and industries, and the degree of marketization has a positive moderating effect on tax and fee reductions to promote enterprise innovation. Accordingly, it systematically reveals the relationship between tax and fee reduction and enterprise innovation; provides a new measurement indicator for the study of the impact of tax and fee reduction on enterprise innovation; and puts forward relevant policy recommendations.