Study on the Impact of VAT Credit Refund Policy on Corporate Digital Transformation

Qi Xie; Chenxi Yang; Bohan Zou

doi:10.54097/9ffafk97

Authors

Qi Xie
Chenxi Yang
Bohan Zou

DOI:

https://doi.org/10.54097/9ffafk97

Keywords:

VAT credit refund, digital transformation, difference-in-differences, text analysis

Abstract

With digital technologies reshaping global economic structures, the micro-level transformation of enterprises has become key to fostering sustainable growth and ensuring long-term economic vitality. This study investigates the effects of the 2018 VAT credit refund policy on corporate digital transformation, using a sample of Chinese listed companies from 2010 to 2023, and applying a difference-in-differences (DID) model. The results show that the policy significantly promotes digital transformation, a conclusion that remains robust after a series of stability tests. Mechanism analysis reveals that the policy primarily drives digital transformation through three pathways: alleviating corporate financing constraints, stimulating R&D innovation, and reducing institutional transaction costs. Further analysis indicates that the policy effect is more pronounced in high-tech industries, enterprises in central and eastern China, and firms in the mature and decline stages of their lifecycle. These findings extend research on digital transformation and offer policy implications for optimizing VAT refund systems.

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