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Structural tax reduction and corporate labor investment efficiency

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  • Guan, Yonghao
  • Wang, Xinyue
  • He, Yiqi

Abstract

On a micro level, structural tax reductions will inevitably have a significant impact on corporate production and management activities, as well as investment behavior. This paper constructs an empirical econometric model to test the corrective effects of structural tax reductions on corporate labor investment efficiency. The test results show that structural tax reductions can significantly improve the inefficiency of corporate labor investment. Further heterogeneous analysis indicates that the corrective effects of structural tax reductions on labor investment efficiency are more pronounced in non-state-owned enterprises and enterprises with higher financing constraints.

Suggested Citation

  • Guan, Yonghao & Wang, Xinyue & He, Yiqi, 2024. "Structural tax reduction and corporate labor investment efficiency," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324000709
    DOI: 10.1016/j.frl.2024.105040
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    References listed on IDEAS

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    Cited by:

    1. Wang, Jingzheng & Qin, Xiaoli, 2024. "Tax reduction incentive and corporate financialization," Finance Research Letters, Elsevier, vol. 62(PB).

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