INCOME TAX PREFERENCE AND R&D INVESTMENTS OF HIGH-TECH ENTERPRISES IN CHINA

Simple item page
dc.contributor.authorSu, Wunhong
dc.contributor.authorFan, Yi-Hao
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2021-12-09T09:34:59Z
dc.date.available2021-12-09T09:34:59Z
dc.description.abstractThis study explores the relationship between income tax preference and R&D investments of high-tech enterprises. This study selects listed high-tech enterprises in China from 2013 to 2018 as samples. The empirical results show that the effective income tax rate among high-tech enterprises in China differs widely. The findings suggest that high-tech enterprises in China have to take advantage of preferential income tax, pay more attention to R&D investments, and strive to improve R&D ability and market competitiveness. In addition, there is a significantly positive relationship between income tax preference and R&D investments of high-tech enterprises, indicating that the preferential tax rate policy and other tax incentives such as additional tax deduction increase R&D investments of high-tech enterprises effectively. State-owned enterprises (SOEs) are enterprises in which the state has ownership or control over its capital. The positive relation between income tax preference and R&D investments of hightech enterprises is more significant for non-SOEs. Non-SOEs have stronger governance efficiency. Therefore, SOEs should make better use of income tax preference and improve innovation enthusiasm. Moreover, this study finds a more positive relationship between income tax preference and R&D investments among high-tech enterprises in the introduction phase than in the growth and mature phases. However, the relation between income tax preference and R&D investments is insignificant for high-tech enterprises in the decline phase. The findings seem to provide a new perspective for the life cycle characteristics of enterprises and the theoretical guidance to enterprises in phases of growth, mature and decline to develop R&D investments better. Finally, loss enterprises or enterprises in geographical units with the innovative environment are eliminated in this study to avoid extra interference. The results remain robust, indicating that preferential income tax policies applied in high-tech enterprises are significantly and positively associated with R&D investments.en
dc.formattext
dc.identifier.doi10.15240/tul/001/2021-4-010
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/161031
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
dc.relation.isbasedonAdizes, I. (1979). Organizational passages – Diagnosing and treating lifecycle problems of organizations. Organizational Dynamics, 8(1), 3–25. h Cambridge, MA: National Bureau of Economic Research. https://doi.org/10.3386/w14494
dc.relation.isbasedonAuerbach, A. J., & Poterba, J. M. (1987). Tax Loss Carryforwards and Corporate Tax Incentives (NBER Working Paper No. 1863). Cambridge, MA: National Bureau of Economic Research. https://doi.org/10.3386/w1863
dc.relation.isbasedonBalakrishnan, K., Blouin, J. L., & Guay, W. R. (2019). Tax Aggressiveness and Corporate Transparency. Accounting Review, 94(1), 45–69. https://doi.org/10.2308/accr-52130
dc.relation.isbasedonBathelt, H., Malmberg, A., & Maskell, P. (2004). Clusters and knowledge: local buzz, global pipelines, and the process of knowledge creation. Progress in Human Geography, 28(1), 31–56. https://doi.org/10.1191/0309132504ph469oa
dc.relation.isbasedonBianchi, M., Gudmundsson, B. R., & Zoega, G. (2001). Iceland’s Natural Experiment in Supply-Side Economics. American Economic Review, 91(5), 1564–1579. https://doi. org/10.1257/aer.91.5.1564
dc.relation.isbasedonBottazzi, L., & Peri, G. (2002). Innovation and Spillovers in Regions: Evidence from European Patent Data. European Economic Review, 47(4), 687–710. https://doi.org/10.1016/s0014- 2921(02)00307-0
dc.relation.isbasedonBrill, A., & Hassett, K. A. (2007). Revenue- Maximizing Corporate Income Taxes: The Laffer Curve in OECD Countries (AEI Working Paper #137). Washington, DC: American Enterprise Institute.
dc.relation.isbasedonBronzini, R., & Piselli, P. (2016). The impact of R&D subsidies on firm innovation. Research Policy, 45(2), 442–457. https://doi. org/10.1016/j.respol.2015.10.008
dc.relation.isbasedonCao, J. L. (2009). Significance of the Recognition of High-tech Enterprises in the New Era. Science & Technology Industry of China, (02), 10–12.
dc.relation.isbasedonCappelen, Å., Raknerud, A., & Rybalka, M. (2012). The effects of R&D tax credits on patenting and innovations. Research Policy, 41(2), 334– 345. https://doi.org/10.1016/j.respol.2011.10.001
dc.relation.isbasedonCastro, P., Tascón Fernández, M. T., Amor-Tapia, B., & de Miguel, A. (2016). Target leverage and speed of adjustment along the life cycle of European listed firms. Business Research Quarterly, 19(3), 188–205. https:// doi.org/10.1016/j.brq.2016.01.003
dc.relation.isbasedonChen, M. G., & Fang, C. C. (2012). Research on Incentive Effect of Income Tax Preferential Policy on High and New Technology Industry. Economy and Management, 26(11), 71–76.
dc.relation.isbasedonKoberg, C. S., Uhlenbruck, N. L., & Sarason, Y. (1996). Facilitators of organizational innovation: The role of lifecycle stage. Journal of Business Venturing, 11(2), 133–149. https:// doi.org/10.1016/0883-9026(95)00107-7
dc.relation.isbasedonCrespi, G., Giuliodori, D., Giuliodori, R., & Rodriguez, A. (2016). The effectiveness of tax incentives for R&D+i in developing countries: The case of Argentina. Research Policy, 45(10), 2023–2035. https://doi.org/10.1016/j. respol.2016.07.006
dc.relation.isbasedonCzarnitzki, D., Hanel, P., & Rosa, J. M. (2011). Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms. Research Policy, 40(2), 217– 229. https://doi.org/10.1016/j.respol.2010.09.017
dc.relation.isbasedonDe Waegenaere, A., Sansing, R. C., & Wielhouwer, J. C. (2012). Multinational Taxation and R&D Investments. The Accounting Review, 87(4), 1197–1217. https://doi.org/10.2308/accr- 10281
dc.relation.isbasedonDickinson, V. (2011). Cash Flow Patterns as a Proxy for Firm Life Cycle. Accounting Review, 86(6), 1964–1994. https://doi.org/10.2308/accr- 10130
dc.relation.isbasedonElschner, C., Ernst, C., Licht, G., & Spengel, C. (2011). What the design of an R&D tax incentive tells about its effectiveness: A simulation of R&D tax incentives in the European Union. The Journal of Technology Transfer, 36, 233–256. https://doi.org/10.1007/ s10961-009-9146-y
dc.relation.isbasedonErosa, A., & González, B. (2019). Taxation and the life cycle of firms. Journal of Monetary Economics, 105, 114–130. https://doi. org/10.1016/j.jmoneco.2019.04.006
dc.relation.isbasedonFu, G. J., & Wei, W. (2019). The Influence of Initiative to Develop Economy of Prefecturelevel City Governments on Enterprise R&D Input. China Journal of Commerce, (20), 209– 212.
dc.relation.isbasedonGokhberg, L., Kitova, G., & Roud, V. (2014). Tax Incentives for R&D and Innovation: Demand versus Effects. Foresight – Russia, 8(3), 18–41. https://doi.org/10.17323/1995- 459x.2014.3.18.41
dc.relation.isbasedonGu, X. L., & Wang, P. (2017). The influence of government subsidies and tax incentives on the technological innovation of high-tech enterprises. Western Finance and Accounting, (08), 13–16.
dc.relation.isbasedonHall, B. H. (1993). R&D Tax Policy During the 1980s: Success or Failure. Tax Policy and the Economy, 7, 1–35. https://doi.org/10.1086/ tpe.7.20060628
dc.relation.isbasedonKasahara, H., Shimotsu, K., & Suzuki, M. (2014). Does an R&D tax credit affect R&D expenditure? The Japanese R&D tax credit reform in 2003. Journal of the Japanese & International Economics, 31, 72–97. https://doi. org/10.1016/j.jjie.2013.10.005
dc.relation.isbasedonKamien, M. L., & Schwartz, N. L. (1975). Market structure and innovation: A survey. Journal of Economic Literature, 13, 1–37.
dc.relation.isbasedonKlassen, K. J., Pittman, J. A., & Reed, M. P. (2004). A Cross-national Comparison of R&D Expenditure Decisions: Tax Incentives and Financial Constraints. Contemporary Accounting Research, 21(3), 639–680. https:// doi.org/10.1506/cf2e-huvc-gafy-5h56
dc.relation.isbasedonLaffer, A. B. (2004). The Laffer Curve: Past, Present, and Future (Report No. 1765). Washington, DC: Heritage Foundation. https:// doi.org/10.2139/ssrn.2182070
dc.relation.isbasedonLévy-Garboua, L., Masclet, D., & Montmarquette, C. (2009). A Behavioral Laffer Curve: Emergence of a Social Norm of Fairness in a Real Effort Experiment. Journal of Economic Psychology, 30(2), 147–161. https:// doi.org/10.1016/j.joep.2008.09.002
dc.relation.isbasedonLiao, T. T., & Xiao, J. S. (2018). The incentive effect of income tax preferential policies on R&D investment – Based on the empirical evidence of listed high-tech enterprises in Fujian. Journal of Fujian Agriculture and Forestry University, 21(06), 49–54.
dc.relation.isbasedonLiu, X. M. (2017). The Effect of Enterprise Income Tax Preferences on R&D of Hi-tech Companies: An Analysis of Fujian’s Listed Hitech Companies. Science and Technology Management Research, 37(21), 29–34.
dc.relation.isbasedonLi, X. J., Yuan, C. L., & Wu, J. G. (2015). Research on the Incentive Effect of Tax Preferential Policies on Independent Innovation of Enterprises in China – Based on GMM Analysis of R&D Investment Intensity of 274 Enterprises on GEM Board of Shenzhen Stock Exchange. China Collective Economy, (21), 74–79.
dc.relation.isbasedonLou, H. T., & Xu, H. P. (2009). Private Technology Innovation Motivated by Government: Empirical Study on Stimulation Effect of Tax Credit. China Accounting Review, 7(02), 191–206.
dc.relation.isbasedonLu, J. S., Zhang, S. M., & Zhu, Y. Y. (2008). Can the High & New-Tech Enterprise Identification Reduce Financing Constraints? Finance Forum, 23(01), 52–65.
dc.relation.isbasedonMeng, Q. Q. (2003). American hightech industry tax preferential policy and its enlightenment to China. Taxation Research Journal, (07), 72–75.
dc.relation.isbasedonMcCutchen, W. W. (1993). Estimating the impact of the R&D tax credit on strategic groups in the pharmaceutical industry. Research Policy, 22(4), 337–351. https://doi.org/10.1016/0048- 7333(93)90004-2
dc.relation.isbasedonOliveira, F. G., & Costa, L. (2013). The VAT Laffer Curve and the Business Cycle in the EU27: An Empirical Approach. Economic Issues Journal Articles, 20(2), 29–43.
dc.relation.isbasedonPiotroski, J. D., & Wong, T. J. (2012). Institutions and Information Environment of Chinese Listed Firms. In Capitalizing China (pp. 201–246). https://doi.org/10.7208/9780226237268-007
dc.relation.isbasedonRaffo, J., Lhuillery, S., & Miotti, L. (2008). Northern and southern innovativity: A comparison across European and Latin American countries. The European Journal of Development Research, 20(2), 219–239. https://doi.org/10.1080/09578810802060777
dc.relation.isbasedonRajagopal, D., & Shah, A. (1995). A rational expectations model for tax policy analysis: An evaluation of tax incentives for the Textile, Chemie, and Pharmaceutical Industries of Pakistan. Journal of Public Economics, 57(2), 249–276. https://doi.org/10.1016/0047- 2727(94)01448-w
dc.relation.isbasedonRauch, J. E. (1991). Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities (NBER Working Paper No. w3905). Cambridge, MA: National Bureau of Economic Research. https://doi.org/10.3386/ w3905
dc.relation.isbasedonRitter, T., & Gemünden, H. G. (2004). The impact of a company’s business strategy on its technological competence, network competence, and innovation success. Journal of Business Research, 57(5), 548–556. https:// doi.org/10.1016/s0148-2963(02)00320-x
dc.relation.isbasedonShahzad, F., Lu, J., & Fareed, Z. (2019). Does the firm life cycle impact corporate risk-taking and performance? Journal of Multinational Financial Management, 51, 23– 44. https://doi.org/10.1016/j.mulfin.2019.05.001
dc.relation.isbasedonSolow, R. M. (1957). Technical Change and the Aggregate Production Function. The Review of Economics and Statistics, 39(3), 312–320. https://doi.org/10.2307/1926047
dc.relation.isbasedonSwenson, C. W. (1992). Some tests of the incentive effects of the research and experimentation tax credit. Journal of Public Economics, 49(2), 203–218. https://doi. org/10.1016/0047-2727(92)90020-g
dc.relation.isbasedonThomson, R. (2010). Tax Policy and R&D Investment by Australian Firms. Economic Record, 86(273), 260–280. https://doi. org/10.1111/j.1475-4932.2010.00636.x
dc.relation.isbasedonWang, X. R., & Wang, X. L. (2009). Research on the correlation between income tax and R&D investment of high-tech enterprises. Public Finance Research, (05), 18–21.
dc.relation.isbasedonYang, Y., Cao, L. Y., & Du, J. (2013). The influence of enterprise income tax preferential policies on the expenditure of R&D – an empirical analysis based on the data GEM companies. Taxation Research, (03), 24–28.
dc.relation.isbasedonZhang, J. R., Chen, Y. X., & Wang, F. J. (2016). Impact of preferential income tax policy on firms’ innovation efficiency. Science Research Management, 37(03), 93–100.
dc.relation.isbasedonZhao, J. (2019). Research on Tax Planning Scheme of High-tech Enterprises. Marketing Management Review, (11), 18–20.
dc.relation.isbasedonZhou, H. (2012). The Impact of Preferential Tax Policy on Technology Innovation – Based on the Listed Companies in China. Reformation & Strategy, 28(08), 67–70.
dc.relation.isbasedonZhu, L., Chen, X., & Wang, C. Y. (2019). Research on the Influence of Mixed Reform of State-owned Enterprises on Corporate Innovation. Business Management Journal, 1–20.
dc.relation.isbasedonZhu, Q. Y. (2019). Encouraging Effects of Income Tax Incentives on Corporate R&D Inputs – an empirical study on publicly-listed IT companies. Tax and Economic Research, 24(02), 18–28.
dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectincome tax preferenceen
dc.subjectR&D investmenten
dc.subjecthigh-tech enterprisesen
dc.subjectinnovationen
dc.subject.classificationE62
dc.subject.classificationH21
dc.subject.classificationH25
dc.subject.classificationO31
dc.titleINCOME TAX PREFERENCE AND R&D INVESTMENTS OF HIGH-TECH ENTERPRISES IN CHINAen
dc.typeArticleen
local.accessopen
local.citation.epage173
local.citation.spage156
local.facultyFaculty of Economics
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue4
local.relation.volume24
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
EM_4_2021_10.pdf
Size:
655.31 KB
Format:
Adobe Portable Document Format
Description:
článek
Download
Collections
Číslo 4