Author(s)

Yiqi He ¹, Yifei Cheng ¹, Jiayi Zhao ², Yonghao Guan ³

Affiliation(s)

¹ School of Accounting, Nanjing University of Finance and Economics, Nanjing, 210023, China
² Hengli East China Petrochemical Sales Co., LTD, Suzhou, 215200, China
³ School of Public Finance and Taxation, Nanjing University of Finance and Economics, Nanjing, 210023, China

Corresponding Author

Yonghao Guan

ABSTRACT

Innovation is the primary driving force for development. Enterprises as the main body of innovation research and development, its scientific and technological innovation ability reflects the whole society's innovation ability, therefore, the government needs to use tax preferential policies to encourage enterprises to innovate research and development. At the same time, it is difficult for enterprises to obtain external investment due to the long research and development cycle of innovation R&D, high capital investment demand, high risk and uncertain outcome transformation. However, when enterprises have sufficient financial flexibility in reserve, they can provide funds for innovation to support innovation research and development. Under the government's introduction of a series of innovation-related preferential tax policies, how to maintain financial flexibility reserve to provide support for enterprise innovation research and development needs to be further studied. Therefore, this paper adds financial flexibility into the study of the impact of tax incentives on enterprise innovation through literature research and empirical analysis methods to study the relationship between the three.

KEYWORDS

Tax incentives; Financial flexibility; Enterprise innovation; Property right nature; Type of enterprise

CITE THIS PAPER

Yiqi He, Yifei Cheng, Jiayi Zhao, Yonghao Guan, Tax incentives, financial flexibility, and corporate innovation. Accounting and Corporate Management (2024) Vol. 6: 187-193. DOI: http://dx.doi.org/10.23977/acccm.2024.060223.

REFERENCES

[1] Hall, B. & Reenen, J.V. How effective are fiscal incentives for R&D?  A review of the evidence [J]. Research Policy, 2000, 29(4-5):449-469. 
[2] Lu Fangyuan, Li Yanlong. Government support helps boost high-tech industry R& D) Efficiency? [J]. Studies in Science of Science, 2016, 34(12):1800-1806+1829.
[3] Li Xiangju, Yang Huan. Industrial heterogeneity, tax incentives and independent innovation: An empirical study of China's A-share listed companies in strategic emerging industries [J]. Science and Technology Progress and Countermeasures, 2019, 36(09): 60-68.
[4] Qiu Jing. Monetary policy, financial flexibility and firm investment efficiency [J]. Social Scientist, 2016, (04):55-60.
[5] [Cui Zhixing, Hu Zhiyong.] Research on the incentive effect of financial flexibility and income tax preference on enterprise R&D: Based on panel data of 1,912 manufacturing listed companies [J]. Journal of Shanghai Commercial College of Commerce, 2019, 21(05): 28-37. 
[6] Zeng Aimin, Fu Yuanlue, Wei Zhihua. Financial crisis shock, financial flexibility reserve and corporate financing behavior: Empirical evidence from Chinese listed companies [J]. Financial Research, 2011(10): 155-169.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Financial Engineering and Risk Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics