Analysis of the Impact of Tax Preferential Incentive Policies on the Digital Transformation and Upgrading of Enterprises: Taking the Accelerated Depreciation Policy of Fixed Assets as an Example

Yuxuan Xia; Zihao Chen; Hongli Zhang

doi:10.54691/8zsjf850

Analysis of the Impact of Tax Preferential Incentive Policies on the Digital Transformation and Upgrading of Enterprises: Taking the Accelerated Depreciation Policy of Fixed Assets as an Example

Yuxuan Xia, Zihao Chen, Hongli Zhang

Frontiers in Science and Engineering, (2025), Vol.5, No.5, pp.43-50

Published: May 22, 2025

DOI: 10.54691/8zsjf850

PDF: Download Full Text PDF

Abstract

This article investigates the impact of accelerated depreciation policies for fixed assets on the digital transformation of enterprises. The policy encourages enterprises to increase fixed assets investment by reducing the tax burden of enterprises, thus promoting digital transformation. Using data from A-share listed companies in Shanghai and Shenzhen from 2011 to 2020, a multi temporal DID model was constructed, and empirical results showed that this policy significantly promoted the digital transformation of enterprises. The study also found that there are differences in the effectiveness of policies among enterprises of different natures, with enterprises with better growth potential and greater industry competition benefiting more significantly. This article provides a theoretical basis for policy-making and has practical significance for promoting digital transformation of enterprises.

Keywords: Accelerated depreciation of fixed assets, Digital transformation of enterprises, Tax incentives, DID model.

APA Citation: Yuxuan Xia, Zihao Chen, Hongli Zhang (2025). Analysis of the Impact of Tax Preferential Incentive Policies on the Digital Transformation and Upgrading of Enterprises: Taking the Accelerated Depreciation Policy of Fixed Assets as an Example. Frontiers in Science and Engineering, 5(5), 43-50. https://doi.org/10.54691/8zsjf850

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