Original scientific paper
https://doi.org/10.1080/1331677X.2023.2190377
The impact of China’s VAT reform policy on financial performance of listed companies in China’s cultural industry
Yu Liu, Limei Cao
Kuan Wan
Abstract
The cultural industry with innovation, low pollution and low energy
consumption may become the next strategic pillar industry in
China. The tax reform of ‘Replacing business tax with value-added
tax (VAT)’ not only lays a solid foundation for the establishment of
green tax system, but also contributes to the enterprise development
and performance improvement. This paper aims to study the
impact of VAT reform policy on the financial performance of listed
companies in the cultural industry. To this end, the PSM-DID
method was applied, and natural experiments were made by taking
A shares listed companies from 2009 to 2014 as the reform pilot.
The research finds that: (1) the VAT reform policy ‘replacing business
tax with VAT’ is conducive to improving the financial performance
of cultural industry enterprises; (2) the policy has more
positive impact on the financial performance of manufacturing cultural
enterprises than on non-manufacturing ones; (3) compared
with state-owned enterprises, the policy contributes more to the
financial performance of private enterprises. This study provides
empirical evidence for evaluating the impact of VAT reform policy
on the operation of cultural industry enterprises. It has practical significance
for improving the VAT system and the financial operation
of cultural enterprises.
Keywords
VAT reform; cultural industry; financial performance; green tax system; green innovation
Hrčak ID:
314066
URI
Publication date:
17.5.2023.
Visits: 403 *