Have tax reduction and fee reduction promoted the development of the financial industry?—Empirical evidence based on listed companies in the financial industry

Figures & data

Figure 1. Tax burden rate of the financial industry.²

Source: National Bureau of Statistics of the People’s Republic of China from the collated statistical yearbooks of the past years.

Table 1. Description of related data variables.

Variable name	Types and sources of data indicators	Variable enactment	Computing formula
Net profit growth rate year on year	Type: Growth ability index Data source: Hithink RoyalFlush	${\mathit{x}}_1$	(Current-quarter net profit - same-quarter net profit last year)/same-quarter net profit last year × 100 %
Total operating income year-on-year growth	Type: Growth ability index Data source: Hithink RoyalFlush	${\mathit{x}}_2$	(Total current-quarter operating income - total current-quarter operating income last year)/Total same-quarter operating income last year × 100 %
Net profit margin on sales	Type: Profitability indicators Data source: Hithink RoyalFlush	${\mathit{x}}_3$	Net profit / net sales income for the quarter × 100 %
Return on equity(ROE)	Type: Profitability indicators Data source: Hithink RoyalFlush	${\mathit{x}}_4$	Net profit/owner equity × 100 %
Cost and expense ratios	Type: Profitability indicators Data Source: CSMAR Database	${\mathit{x}}_5$	(Current operating costs + current period costs)/current operating income × 100 %
Total asset turnover rate	Type: Operational capability index Data Source: CSMAR Database	${\mathit{x}}_6$	Sales income/average total assets
Debt to asset ratio	Type: Indicators of solvency Data source: Hithink RoyalFlush	${\mathit{x}}_7$	Total end-of-period liabilities/total end-of-period assets
Comprehensive tax burden	Type: Tax burden index Data Source: CSMAR Database	${\mathit{x}}_8$	(Current tax and additional + current income tax expenses)/current total operating income × 100 %

Source: collected from the Hithink RoyalFlush and CSMAR Database.

Table 2. Stability test results of each index.

Sequence name	Test method	Results of inspection	Sequence name	Test method	Results of inspection
X1	LLC	−548.94*** (0.00)	X2	LLC	−12.49*** (0.00)
	IPS	−80.22*** (0.00)		IPS	−6.61*** (0.00)
X3	LLC	−5.27*** (0.00)	X4	LLC	−28.43*** (0.00)
	IPS	−6.05*** (0.00)		IPS	−22.50*** (0.00)
X5	LLC	−23.57*** (0.00)	X6	LLC	−32.46*** (0.00)
	IPS	−21.77*** (0.00)		IPS	−29.08*** (0.00)
X7	LLC	−2.99*** (0.00)	X8	LLC	−13.21*** (0.00)
	IPS	−1.77*** (0.00)		IPS	−12.55*** (0.00)

Source: relevant data from the database through stata software unit root test steps and the test results are summarized.

Figure 2. Response of net profit growth rate year on year to the comprehensive tax burden.

Source: results of impulse response operation of the sorted data by stata software.

Figure 3. Response of net profit margin on sales to the comprehensive tax burden.

Source: results of impulse response operation of the sorted data by stata software.

Figure 4. Response of total asset turnover rate to the comprehensive tax burden.

Source: results of impulse response operation of the sorted data by stata software.

Figure 5. Response of debt to asset ratio to the comprehensive tax burden.

Source: results of impulse response operation of the sorted data by stata software.

Table 3. Optimal lag order selection results.

Lag	AIC	BIC	HQIC
1	16.6796	18.1591	17.2318
2	16.2989	17.94	16.9131
3	15.3497	17.1683	16.0322
4	14.4811	16.4956	15.2394
5	13.9396*	16.1717*	14.7825*

Source: relevant data from the database through the stata software to calculate the optimal lag order steps, and according to the optimal lag order results obtained by sorting.