The Tax Planning of Enterprises Will Improve Their Total Factor Productivity


  • Siyuan Wang



Corporate Tax Avoidance; Total Factor Productivity; TFP; External Mechanism of R & D and Innovation Investment Activities.


Improving total factor productivity is the key to accelerating the development of economy to high quality, and the production and operation activities of enterprises need sufficient cash flow support. In fact, when enterprises carry out independent innovation and project investment, most of them will encounter financing constraints. When the cash flow of enterprises is not sustainable or it is difficult to boost the activities of improving total factor productivity, scientific and reasonable tax planning of enterprises will provide them with better opportunities. Reasonable tax avoidance behavior of enterprises can increase capital inflows, boost technological innovation and investment activities, and thus significantly improve total factor productivity. It is found that there is a significant moderating effect of external mechanism on the effect of corporate tax avoidance on TFP. The stricter the external supervision of enterprises is, the greater the role of tax avoidance activities in promoting TFP is. The conclusion of this paper clarifies the impact of tax avoidance on the high-quality development of enterprises, and has profound policy implications.


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How to Cite

Wang, S. (2022). The Tax Planning of Enterprises Will Improve Their Total Factor Productivity. Frontiers in Humanities and Social Sciences, 2(9), 77-87.

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