Enterprise Tax Burden and R&D Investment: Evidence from Chinese GEM Listed Companies

Yingxuan Liu ()
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Yingxuan Liu: Shenzhen Institute of Information Technology

A chapter in Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022), 2023, pp 485-494 from Springer

Abstract: Abstract R&D investment costs a lot of funds, which is the fundamental driving force to maintain enterprise competitiveness and innovation ability. As a rigid expenditure of enterprises, tax revenue will reduce the free cash flow of enterprises to a certain extent. The relationship between the degree of enterprise tax burden and its R&D activities is worth further exploration. This paper constructs a regression model based on the data of listed GEM companies from 2010 to 2020 and examines the relationship between the enterprise's total tax burden and its R&D investment. Empirical research has shown that an increase in the total tax burden of enterprises will negatively affect innovation investment activities to a certain extent. It is also found by further testing the enterprise age that the tax burden has a greater impact on R&D innovation activities for younger companies.

Keywords: R&D investment; Tax burden; Innovation; Heterogeneity; Regression analysis (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-054-1_52

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DOI: 10.2991/978-94-6463-054-1_52

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