Does tax incentive improve corporate resilience?A quasi-natural experiment based on value-added tax retained rebate policy

The value-added taxes (VAT) retained rebate policy, as an important fiscal initiative to stimulate corporations, has provided new avenues for enterprises to improve their resilience. Using China's VAT retained rebate policy enacted in 2018 as an exogenous shock, this paper examines its impact on corporate resilience using the Difference-In-Differences (DID) model based on a sample of A-share listed companies. The results show that this policy significantly enhances corporate resilience. Further research reveals that the value-added tax (VAT) credit refund policy is particularly more effective when companies have a high likelihood of accumulating VAT credits, bear heavy tax burdens, operate with low commercial credit levels, possess weak bargaining power with suppliers, and are located in regions with strong tax administration capacity. Moreover, the policy has a sustained positive effect on firms' financial performance. Notably, this paper not only evaluates the microeconomic effects of the VAT retained rebate policy from the perspective of corporate resilience, but also provides decision-making insights for tax incentives aimed at supporting enterprises and promoting their high-quality development.