Tax preference, financing constraints and enterprise investment efficiency-Experience, of China's enterprises investment.

ABSTRACT: This paper takes the 2014 pilot project of accelerated depreciation of fixed assets as a quasi-natural experiment, and builds a Propensity Score Matching-Difference in Differences (PSM-DID) model based on the data of Chinese listed companies from 2000 to 2019 to test the impact of tax preference on enterprise investment efficiency and its mechanism. The results show that the policy inhibits supported enterprises investment efficiency significantly. Heterogeneity analysis shows that the policy causes greater investment efficiency losses for small and medium-sized enterprises, non-state-owned enterprises and asset-heavy enterprises. The mechanism test found the reason why the policy eased financing constraints but inhibited investment efficiency in short-term. After a variety of robustness t

SUBMITTER: Zhai L 

PROVIDER: S-EPMC9499234 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature