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Exploring the effect of VAT carryforward and refund policy on enhancing innovation efficiency among China's A-share listed firms

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  • Huang, Yisong
  • Sun, Ze
  • Huang, Yan

Abstract

This research examines the effect of the VAT carry-forward tax refund policy on the innovation efficiency of A-share listed companies in China, spanning the period from 2015 to 2022. The findings indicate a notable enhancement in corporate innovation efficiency subsequent to the implementation of this policy. The policy's mechanism lies in fostering increased R&D investment, which, in turn, accelerates innovation. Notably, state-owned enterprises exhibit a more pronounced tendency to allocate additional funds towards enhancing their innovation efficiency in response to the VAT carry-forward tax refund policy.

Suggested Citation

  • Huang, Yisong & Sun, Ze & Huang, Yan, 2025. "Exploring the effect of VAT carryforward and refund policy on enhancing innovation efficiency among China's A-share listed firms," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015976
    DOI: 10.1016/j.frl.2024.106568
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    References listed on IDEAS

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