VAT credit refund policy and corporate risk-taking: Evidence from China

Qian Niu, Jin Yuan, Fengli Kang and Le Wen

Finance Research Letters, 2025, vol. 81, issue C

Abstract: Based on the data of A-share listed companies from 2013 to 2021, this paper investigates the impact of the value-added tax (VAT) credit refund policy on corporate risk-taking. The findings indicate that the VAT credit refund policy significantly enhances corporate risk-taking. Mechanism tests indicate that this policy promotes corporate risk-taking by alleviating financing constraints, improving innovation capabilities, and enhancing ESG performance. Furthermore, the effect of the VAT credit refund policy on corporate risk-taking is more pronounced for enterprises located in regions with better business environments, in eastern regions, and among non-state-owned enterprises.

Keywords: Value-added tax; Credit refund policy; Corporate risk-taking; Financing constraints (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007378

DOI: 10.1016/j.frl.2025.107478

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