Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
In this paper I try to find if the Chinese recent Business Tax to Value-Added Tax Reform (the B2V Reform), which requires companies to adopt value-added tax instead of business tax, has caused the firms to invest more and hire more. I analyze the firms listed in the Shanghai Stock Exchange 50 Index. The results of the analysis show that adopting the new tax method is positively correlated to the increase of capital expenditure and the increase of employees and the effects differ in financial and non- financial firms. Non-financial firms tend to be more influenced by the policy change because they rely on more fixed asset and labor to operate. This study could inform policymakers from governments and corporations about how a VAT system could potentially affect corporate behaviors and operation.
Huang, Yuanlong, "China’s Business Tax to Value-Added Tax Reform’s Impact on Corporations’ Investment and Hiring Behavior" (2018). CMC Senior Theses. 1874.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.