Structural tax reduction and corporate labor investment efficiency

Yonghao Guan, Xinyue Wang and Yiqi He

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: On a micro level, structural tax reductions will inevitably have a significant impact on corporate production and management activities, as well as investment behavior. This paper constructs an empirical econometric model to test the corrective effects of structural tax reductions on corporate labor investment efficiency. The test results show that structural tax reductions can significantly improve the inefficiency of corporate labor investment. Further heterogeneous analysis indicates that the corrective effects of structural tax reductions on labor investment efficiency are more pronounced in non-state-owned enterprises and enterprises with higher financing constraints.

Keywords: Labor investment efficiency; Structural tax reduction (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324000709

DOI: 10.1016/j.frl.2024.105040

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