Contemporary Finance & Economics ›› 2023, Vol. 0 ›› Issue (12): 144-156.

• Modern Accounting • Previous Articles    

Can Tax Incentives Promote the Digital Transformation of Enterprises?

HUANG Yi-song   

  1. Jiangxi University of Finance and Economics, Nanchang 330013, China
  • Received:2022-09-10 Revised:2023-03-26 Online:2023-12-15 Published:2023-12-14

Abstract: Digital transformation has a profound impact on the business, process and modes of enterprises. How to promote enterprise digital transformation has become a hot topic in the current practical and academic circles. Taking China’s A-share listed companies from 2008 to 2020 as the research samples, this paper examines the impact of tax incentives on the digital transformation of enterprises and its mechanism. The findings show that tax incentives can promote the digital transformation of enterprises. The analysis of the function mechanism shows that tax incentives can promote the digital transformation of enterprises by improving enterprise innovation and easing enterprise financing constraints. Further test reveals that when enterprises are faced with greater environmental uncertainty and stronger competitive advantages, tax incentives have more significant effects on the promotion of enterprise digital transformation. The above research results have expanded the researches on the impact factors of enterprise digital transformation and the economic consequences of tax incentives, providing empirical evidences and policy references for Chinese government departments to adhere to the policy of reducing taxes and fees, increase the strength of tax returns, and promote enterprises to realize digital transformation faster and better.

Key words: tax incentives, digital transformation, enterprise innovation, financing constraints

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