Research on the Impact of R&D Investment Under Tax Preferences on the Long-Term Debt Paying Ability of Enterprises ——Based on the Empirical Analysis of China's Shanghai and Shenzhen Listed Companies

Abstract

Science and technology are the primary productive forces. Nowadays, most countries attach great importance of R&D investment. According to data released by OECD and other institutions, the United States continues to rank first in the world in terms of specific R&D expenditures, with US$612.7 billion in 2019; China After surpassing the 27 EU countries in 2015, it has been firmly ranked second, with 514.8 billion U.S. dollars in 2019. However, from the perspective of growth trends, China’s R&D investment in science and technology is growing at a significantly higher rate than other countries. According to the growth rate, it is expected that China’s R&D investment in science and technology is expected to surpass around 2022. In the context of the Chinese government's strong support for technological innovation of enterprises, various preferential tax policies have encouraged enterprises to invest in research and development. However, under preferential tax policies, enterprises have reduced their capital occupation, which in turn increases their cash flow and reduces their research and development. Risks promote the increase in corporate R&D investment, and the impact on corporate R&D investment in its long-term debt servicing ability is different. Therefore, under the preferential after-tax policies, it is of practical significance to study the relationship between the R&D investment of Chinese listed companies and the corporate solvency. This paper selects China's Shanghai and Shenzhen A-share listed companies as the research sample. The time span is from 2015 to 2019. A panel model is constructed and multiple regression analysis is performed to empirically test the impact of R&D investment on the long-term solvency of companies. On this basis, Incorporate taxes incentives into the model. Research shows that: R&D investment is significantly negatively correlated with corporate debt solvency; corporate R&D investment under tax incentives has a stronger impact on its long-term debt solvency.