Tax Preferences and Corporate Innovation-Evidence from China
DOI:
https://doi.org/10.6981/FEM.202412_5(12).0005Keywords:
Tax Preferences; Corporate Innovation; Financial Constraints.Abstract
Based on data from China, our paper disentangles the impacts of tax preferences on corporate innovation behaviors. Statistical outcomes show that tax incentives significantly enhance corporate R&D expenses and innovation behaviors. Our findings are robust to a series of checks. Furthermore, we also verified that tax preferences significantly mitigate the financial constraints. Our research adds to empirical evidence on the policy impacts of tax tools on innovation from developing countries and transitional economies.
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