Tax Policy and R&D Investment by Listed Companies

This paper analyzes the determinants of investment in R&D by firms, with a focus on the role, of tax policy. The empirical analysis considers an unstructured set of financial data of about 100 listed companies in stock market of china in 2007 by used the econometrical model. The principal result is that the incentive of income tax rate is still dominant in China's tax policy and turnover tax incentive effect is not very great. There are many constraints in tax incentives and so it reduces the policy of universality. On the other hand, the partial contents of tax incentives policies are not reasonable which causes some tax incentives policies failure. And on this basis this paper gives the corresponding policy recommendations from four aspects which are categories of taxes, tax rates, and incentives mode.