Can Tax Reduction and Fee Reduction Mitigate Enterprise Financial Risk?------Based on the analysis of Chinese A-share manufacturing industry

• 1、Wuhan University of Science and TechnologyEvergrande School of Management / Hubei Industrial Policy and Management Research Center, Wuhan, Hubei 430065, China

Abstract：Tax reduction and fee reduction is a key policy to promote the high-quality development of China\'s economy. At the beginning of 2018, the central government clearly put forward the economic work direction of "stabilizing employment, stabilizing finance, stabilizing foreign trade, stabilizing foreign investment, stabilizing expectations" and proposed "studying large-scale tax reduction and fee reduction". This has had an important impact on the development of China\'s manufacturing industry. Based on the event of tax reduction and fee reduction, we use the sample data of A-share manufacturing companies in China from 2017 to 2020, and use multiple linear regression analysis, heterogeneity test, endogeneity test, and robustness test to study the impact of tax reduction and fee reduction on corporate financial risk. The results show that: tax reduction and fee reduction can motivate manufacturing enterprises to increase investment in research and development, and can effectively reduce the possibility of financial risks; At the same time, the study also found that the effect of tax reduction and fee reduction on the financial risk of small-scale manufacturing industry is more obvious.

Keywords： Tax reduction and fee reduction；Research and development investment；Enterprise financial risk