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.