The Performance of Listed Companies in China and the Impact of VAT Reduction Policy on Them During the COVID-19 Pandemic

This impact of the COVID-19 on state-owned enterprises (SOEs) and non state-owned enterprises (NSOEs) are different. In addition, the benefits obtained by SOEs and NSOEs through value-added tax (VAT) reduction policy are not the same as well. COVID-19 adversely affect Chinese listed firms but SOEs suffer less than NSOEs due to the external help from government. VAT reduction policy help firms increase performance and NSOEs benefits more than SOEs from the policy. NSOEs prefer more on fixed assets investment than SOEs. In some industries that are seriously monopolized by SOEs, they usually have much more excellent performance than NSOEs do