Corporate Investment and Tax Disincentive： Evidence from China

作     者：Weibo Xing 

作者机构：School of-International Trade and Economics University of International Business and Economics Beijing 100029 China 

出 版 物：《Frontiers of Economics in China-Selected Publications from Chinese Universities》 (中国高等学校学术文摘·经济学（英文版）)

年 卷 期：2016年第11卷第2期

页      面：321-350页

学科分类：120202[管理学-企业管理（含：财务管理、市场营销、人力资源管理）] 12[管理学] 02[经济学] 0202[经济学-应用经济学] 1202[管理学-工商管理] 020203[经济学-财政学（含∶税收学）] 

基　　金：Ministry of Education of the People's Republic of China  MOE  (15YJA790070) 

主　　题：fixed asset investment ratio effective tax rate Tobin's q cash flow 

摘      要：This study investigates how taxes influence corporate investment behavior. Based on a census of Chinese industrial enterprises, we utilize a tax-adjusted q model to examine the effects of taxes on corporate investment in fixed assets in China. Results show that the effective tax rate has a relatively small but significantly negative impact on Chinese firms＇ investment in fixed assets. We extend the tax-adjusted q model to control for the lagged investment effect and peer effect of investment. Models with these effects do better at explaining the impact of taxes on firms＇ investment. The lagged investment models present smaller but significant tax disincentive. Firms compete for investment with other firms both in the same region and in the same industry through peer effect. In addition, the tax disincentive differs among state owned enterprises, private enterprises, and other enterprises in China.