Impact of Tax Incentive Policies on Corporate Financial Performance: Based on Data from Listed Companies from 2012-2016

In recent years, to promote the transformation and upgrading of enterprises and achieve high-quality economic development, China has continuously implemented tax incentive policies, which play an important role in stimulating enterprises to improve management capabilities and financial performance. This paper studies whether tax incentive policies affect the financial performance of enterprises. Based on previous literature, we select the financial data of A-share listed companies in the Cathay database from 2012 to 2016 as samples, considering companies with year-end tax rates below 25% as enjoying tax incentives. Using the model constructed in this paper for regression analysis, it is found that tax incentive policies indeed improve corporate financial performance. Due to industry characteristics and development differences, the promotion effect of tax incentive policies on corporate financial performance varies across industries, thereby providing policy suggestions for optimizing China's tax incentive policies and promoting corporate performance.