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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. 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).
    3. Cui, Xiao & Li, Pingrui, 2025. "Digital economy, environmental expenditure, and green total factor productivity," Finance Research Letters, Elsevier, vol. 73(C).
    4. 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).
    5. Wang, Siheng & Zhang, Xin, 2025. "Environmental courts, financing constraints, and corporate green innovation," Finance Research Letters, Elsevier, vol. 75(C).
    6. Xu, Dan & Wu, Cuihua, 2025. "Regulatory effects of environmental protection tax law on corporate practices in China," Finance Research Letters, Elsevier, vol. 71(C).
    7. 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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