Structural Tax Cuts and Corporate Debt Structure Adjustment:Implications on the Ex-ante Financial Risk Management Effects of Fiscal Policy
It is generally believed that fiscal policy's role in managing financial risks primarily manifests in ex-post interventions characterized by"external rescue".However,this paper posits that fiscal policy not only plays a role in post-crisis intervention but also has ex-ante governance effects on financial risks.Specifically,structural tax cuts can achieve significant macroeconomic regulatory effects with fewer policy resources,enabling firms to optimize their debt structure without a drastic reduction in debt levels and manage risks of non-distressed enterprises.This paper focuses on the adjustments of corporate debt structure under structural tax cut policies.For enterprises that are not financially distressed,financial risks mainly manifest as difficulties in refinancing,making them vulnerable to negative shocks and increasing the probability of financial distress.Such financial risks often stem from disruptions in the capital chain.Therefore,this paper centers on preventing ex-ante financial risks for enterprises,discussing the extent to which non-distressed firms can prevent themselves from falling into financial distress.In this context,the debt structure plays a vital role;a diversified debt structure indicates that a firm's liabilities consist of a broader range of debt types,meaning that the firm has more established financing channels.By diversifying their debt structure and expanding financing channels before encountering financial distress,rather than depleting a single financing channel or seeking new sources of funds only when external shocks necessitate a change,firms can enhance their future capacity to respond to sudden funding needs.When emergency funding is required,firms can quickly access revolving funds through existing financing channels without incurring significant costs to find new ones.This paper constructs a measure of debt concentration for Chinese firms and employs a difference-in-differences(DID)model to empirically analyze A-share listed companies in China,using the fixed assets accelerated depreciation policy as a"zero-interest loan"type of structural tax cut policy.The paper finds that the policy improves firms'cash flow,allowing them to expand their financing channels and build a more diversified and lower-risk debt structure,thus mitigating refinancing risks and financial distress.In terms of the sources of debt changes,operating payables decrease,reducing reliance on fixed financing channels.Additionally,the changes in bank loans and bond financing differ across firms with varying financing constraints and growth stages.The findings demonstrate that fiscal measures have not only ex-post risk resolution capabilities but also ex-ante risk management effects.Strengthening fiscal and financial coordination can enhance resource allocation efficiency and support balanced development and security.This study provides significance in four aspects:①This paper extends the discussions on debt structure.Based on Chinese debt structure indicators,it supplements research on dynamic changes in debt structure and the impact of macroeconomic policies on corporate debt structure.②Regarding the practice of structural tax cuts in China,existing literature primarily analyzes corporate debt from a quantitative perspective.This paper offers more a comprehensive analysis of changes in debt concentration,debt maturity,and debt types,thus supplementing research on the dynamic adjustment of corporate debt structures due to tax policies,especially structural tax cuts.③ Existing literature usually discusses corporate asset allocation.This paper,however,finds that firms not only allocate assets but also proactively allocate debts,which is significant for further understanding corporate financing and investment behavior.④This paper has practical significance for optimizing corporate debt structures and preventing and resolving financial risks.
万方数据
维普
