Does tax deduction relax financing constraints? Evidence from China's value-added tax reform

被引：32

作者：

Wang, Jingwen ^{[1
]}

Shen, Guangjun ^{[2
]}

Tang, Dunzhe ^{[1
]}

机构：

[1] Tsinghua Univ, Sch Econ & Management, Beijing 100084, Peoples R China

[2] Sun Yat Sen Univ, Lingnan Coll, 135 Xingangxi Rd, Guangzhou 510275, Guangdong, Peoples R China

来源：

CHINA ECONOMIC REVIEW | 2021年 / 67卷

关键词：

Tax deduction; Financial constraints; External financing; VAT reform; RESEARCH-AND-DEVELOPMENT; CREDIT ALLOCATION; ECONOMIC-GROWTH; BANK CREDIT; INVESTMENT; DETERMINANTS; FIRMS; MISALLOCATION; INFORMATION; DEPENDENCE;

D O I：

10.1016/j.chieco.2021.101619

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

Financial constraint is a significant obstacle for firm growth, especially in developing countries where credit is scarce. This paper explores the role of tax policy in relaxing firms' financial constraints by exploiting China's value-added tax (VAT) reform that was initiated in 2004 and completed in 2009. We use a quasi-experimental method and Annual Survey of Industrial Firms (ASIF) data from 2000 to 2009 to estimate the VAT reform's policy effects on financial constraints. We show that the VAT reform significantly improves firms' external financing capacity by decreasing borrowing costs and promoting commercial credit. The findings are robust to alternative specifications but show heterogeneity across ownerships, firm sizes, regions, and between export and non-export firms. Our analysis suggests tax deduction is useful to relax firms' financial constraints.

引用

页数：16

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