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VAT credit refund policy and corporate risk-taking: Evidence from China

Author

Listed:
  • Niu, Qian
  • Yuan, Jin
  • Kang, Fengli
  • Wen, Le

Abstract

Based on the data of A-share listed companies from 2013 to 2021, this paper investigates the impact of the value-added tax (VAT) credit refund policy on corporate risk-taking. The findings indicate that the VAT credit refund policy significantly enhances corporate risk-taking. Mechanism tests indicate that this policy promotes corporate risk-taking by alleviating financing constraints, improving innovation capabilities, and enhancing ESG performance. Furthermore, the effect of the VAT credit refund policy on corporate risk-taking is more pronounced for enterprises located in regions with better business environments, in eastern regions, and among non-state-owned enterprises.

Suggested Citation

  • Niu, Qian & Yuan, Jin & Kang, Fengli & Wen, Le, 2025. "VAT credit refund policy and corporate risk-taking: Evidence from China," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007378
    DOI: 10.1016/j.frl.2025.107478
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    1. Yao, Dingjun & Zhang, Yu & Hu, Jinzhan & Fan, Kun, 2025. "Effect of coupling and coordinated development of green finance and fintech on corporate risk-taking: Evidence from China," Finance Research Letters, Elsevier, vol. 85(PB).

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