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Government budget management, tax incentives, and corporate performance

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  • Ni, Qizhen

Abstract

Based on long-term panel data of Chinese A-share listed companies from 2009 to 2023, this paper constructs an econometric model to empirically examine the correlation mechanism between government budget management, tax incentives, and corporate performance. Panel model tests reveal that government budget management significantly enhances corporate performance, and that tax incentives also have a significant positive effect on corporate performance. Further mechanism analysis indicates that government budget management plays a moderating role in the impact of tax incentives on corporate performance. Heterogeneity tests show that the effects of tax incentives on corporate performance exhibit significant heterogeneity between state-owned enterprises (SOEs) and private enterprises (PEs).

Suggested Citation

  • Ni, Qizhen, 2025. "Government budget management, tax incentives, and corporate performance," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020227
    DOI: 10.1016/j.frl.2025.108768
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    References listed on IDEAS

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