Analysis of Tax Preference and Corporate Debt Default Based on Stata Software

With the economic growth rate slowing down, the increase in production cost of enterprises and the intensification of competition at home and abroad have begun to erode the profits of enterprises, making it increasingly difficult for enterprises to repay their debts. Continuing to implement the new preferential tax policies for the market will help enterprises to run smoothly and further stimulate the vitality of the market. This paper selects listed companies in the China A-share market from 2009 to 2017 as the research object and empirically analyzes the correlation between tax incentives, financing constraints, and corporate debt default. The study finds that tax incentives effectively ease the financing constraints of enterprises; At the same time, tax incentives can curb corporate debt default; Through further verification, financing constraints play a part in mediating the effect of the relationship between tax incentives and corporate debt default.