IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v82y2023ics0927538x23002019.html
   My bibliography  Save this article

How does export VAT rebates policy affect corporate investment efficiency? Evidence from corporate tax stickiness

Author

Listed:
  • Wang, Xinyi
  • Zhu, Ling

Abstract

VAT rebates have gained prominence as a significant tax incentive policy. This study aims to illuminate how adjustments to the export VAT rebate rate influence corporate investment efficiency from the perspective of tax stickiness. The results show that the implementation of export VAT rebates significantly improves corporate investment efficiency, especially for firms experiencing underinvestment. Tests exploring potential channels reveal that raising export tax rebates mitigates corporate tax stickiness, thereby enhancing investment efficiency. Further analysis indicates that the positive effect on investment efficiency is more pronounced for firms with limited access to external financing and for non-high-tech firms. Our findings suggest that adjustments to tax rebates in export markets play a vital role in alleviating tax stickiness and improving investment efficiency.

Suggested Citation

  • Wang, Xinyi & Zhu, Ling, 2023. "How does export VAT rebates policy affect corporate investment efficiency? Evidence from corporate tax stickiness," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:pacfin:v:82:y:2023:i:c:s0927538x23002019
    DOI: 10.1016/j.pacfin.2023.102130
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X23002019
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2023.102130?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:82:y:2023:i:c:s0927538x23002019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.