Analysis of Market Effect and Influencing Factors of “Replace Business Tax with VAT” —Evidence from Listed Companies in the Financial Industry

摘要

“Replace Business Tax with VAT” has been implemented in the financial in-dustry, aiming at reducing the tax burden of financial enterprises. Taking listed companies in financial industry as samples, this paper empirically analyses the market response to this favorable policy and its possible influencing factors by using event study method. The results show that the market does not respond strongly to the announcement events of the “Replace Business Tax with VAT” policy in the financial industry, but strongly to the implementation of the “Re-place Business Tax with VAT” policy. The average abnormal returns (1.17%) of the sample companies in the implementation day are significantly positive, and the cumulative abnormal returns (0.85%) of the event window [-1, 1] are also significantly positive. Regression analysis shows that the salary ratio, fi-nancial leverage, book-to-market value ratio, ownership concentration and property nature of sample companies are positively correlated with the abnor-mal return on the implementation date, while the asset size is negatively corre-lated with the abnormal return.