The Impact of Government Tax Incentives on Corporate Financial Performance

This study aims to explore the impact of government tax incentives on corporate financial performance and its mechanisms. By analyzing data from A-share listed companies, the study finds that tax incentives can effectively reduce the tax burden of enterprises, enhance liquidity and investment capacity, thereby promoting improvements in profitability and financial performance. The study also finds that the impact of tax incentives is more significant for small-scale enterprises and certain regions, particularly in the economically developed eastern and central regions. However, the effectiveness of tax incentives is more limited in large enterprises, and excessive reliance on tax incentives may suppress innovation capacity and market competitiveness.