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Environmental protection tax law and corporate ESG performance

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  • Li, Yujie
  • Hua, Ziyan

Abstract

We analyze the bond between environmental protection tax law (EPTL) and corporate environmental, social, and governance (ESG) performance and explore the mediating role of corporate green technological innovation between the two. The study reveals a significant positive correlation between implementing EPTL and corporate ESG performance, with corporate green technological innovation acting as an intermediary. Furthermore, we find heterogeneity in the influence of EPTL on corporate ESG performance, which is primarily concentrated in non-state-owned enterprises. This study's conclusions remain valid after robustness and parallel trend tests.

Suggested Citation

  • Li, Yujie & Hua, Ziyan, 2024. "Environmental protection tax law and corporate ESG performance," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004537
    DOI: 10.1016/j.frl.2024.105423
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    References listed on IDEAS

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    Cited by:

    1. Li, Fengzuo & Na, Pengjie & Wang, Xiaolan & Li, Xinyu, 2024. "Environmental protection taxes, audit fees and corporate ESG performance," Finance Research Letters, Elsevier, vol. 69(PA).
    2. Cui, Xiao & Li, Pingrui, 2025. "Digital economy, environmental expenditure, and green total factor productivity," Finance Research Letters, Elsevier, vol. 73(C).
    3. Zhang, Jingjing & Zhang, Weiwei & Su, Chang & Kattuman, Paul, 2025. "The impact of environmental protection fee-to-tax reform on differentiated environmental management behavior of firms," Research in International Business and Finance, Elsevier, vol. 77(PB).
    4. Mou, Saiya & Wang, Xinquan & Hu, Feng, 2025. "Does privatization hurt ESG? The role of state-owned imprinting," Energy Economics, Elsevier, vol. 151(C).
    5. Zhang, Zhihe & Yu, Zaishui & Yao, Chengyu & Zhang, Zerui, 2025. "Environmental policy orientation and corporate green transformation: A study based on information disclosure perspective," Finance Research Letters, Elsevier, vol. 83(C).
    6. Ren, Zhongfu & Xu, Han, 2025. "From fee to tax: Can legal system strengthening enhance environmental performance?," Finance Research Letters, Elsevier, vol. 86(PF).
    7. Xu, Dan & Wu, Cuihua, 2025. "Regulatory effects of environmental protection tax law on corporate practices in China," Finance Research Letters, Elsevier, vol. 71(C).
    8. Wu, Ke & Zhang, Yongfang & Chen, Ying & Li, Miao, 2025. "Impact of digital finance on corporate ESG," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    9. Huang, Youwei & Liu, Chaoyang & Wang, Li & Qi, Yuzhu, 2025. "The Impact of environmental protection tax on corporate ESG performance and corporate green behavior," Research in International Business and Finance, Elsevier, vol. 75(C).
    10. Sun, Zhonghua & Wei, Wei, 2025. "Green technology innovation and corporate brand competitiveness: an analysis based on the role of environmental policy," Finance Research Letters, Elsevier, vol. 71(C).
    11. Wang, Siheng & Zhang, Xin, 2025. "Environmental courts, financing constraints, and corporate green innovation," Finance Research Letters, Elsevier, vol. 75(C).
    12. Wu, Xiuling & Sun, Xueli, 2025. "Environmental protection tax and green low-carbon development," Finance Research Letters, Elsevier, vol. 86(PA).
    13. Liu, Weiyong & Liu, Weiwen, 2025. "Green financial instruments: Economic, technological, and legal cycles in the development of the energy transition period," Technological Forecasting and Social Change, Elsevier, vol. 215(C).

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