Tax incentives and corporate internationalization performance: evidence from China's accelerated depreciation policy

Using data of China's listed companies from 2010 to 2018, we investigate the effects of China's accelerated depreciation (CACD) policy on corporate internationalization performance. The results show that CACD policy increases corporate incomes in foreign markets by 16.15% through the market expansion channel and the innovation incentive channel. The policy effect is more pronounced for firms with better corporate governance, more serious financial constraints, and weaker financial risks.