Abstract
China has been using production-based VAT for a long time, while most countries in the world using consumption-based VAT. Compared with production-type VAT, consumption-based VAT has many advantages, such as stimulating investment, reducing the burden of enterprises. In addition, production-type VAT has not suited to China’s economic development. In September 2004, the State Council required the implementation of VAT reform in Northeast China, allowing companies in some sectors offset contained in the device class of fixed assets input tax. This paper analyzes the impact of VAT transformation reform of listed companies. In theory, the transformation of VAT directly affects the company’s recorded value of fixed assets and depreciation. And it can increase corporate profits, net profits. In order to test the impact of VAT transformation, this paper put forward two hypotheses: first, VAT transformation will stimulate investment; Second, value-added tax transformation will increase profit of listed company. This paper selects 2001-2003 and 2005-2008 financial data of 56 listed companies in Northeast China as the sample data, through the establishment of models, multiple linear regressions to test the value-added tax and profits, the empirical results show that the value-added tax has a positive role in the enterprise, improve the business performance.
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Fengyun, L., Chunhua, W. (2012). Research on the Impact of VAT Transformation on Investment in Fixed Assets and the Performance of Listed Companies in Northeast China. In: Tan, H. (eds) Knowledge Discovery and Data Mining. Advances in Intelligent and Soft Computing, vol 135. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-27708-5_4
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DOI: https://doi.org/10.1007/978-3-642-27708-5_4
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-27707-8
Online ISBN: 978-3-642-27708-5
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