Tax policy reform and corporate innovation in China

Lerong He, Xiaozhen Jiang and Liting Fang

Finance Research Letters, 2023, vol. 55, issue PA

Abstract: •Lower effective tax rates boost innovation.•The VAT tax reform has both direct and indirect effects on innovation.•Spillover effects from acquired technology encourage indigenous corporate innovation.•The effect of the tax reform varies with firm, industry, and regional characteristics.•The tax reform affects corporate innovation by influencing firm financing constraints, cash flow, and R&D personnel.

Keywords: Tax policy reform; Corporate innovation; R&D investment; China (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002635

DOI: 10.1016/j.frl.2023.103891

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