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Environmental protection taxes, audit fees and corporate ESG performance

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  • Li, Fengzuo
  • Na, Pengjie
  • Wang, Xiaolan
  • Li, Xinyu

Abstract

The effectiveness of promoting sustainable development depends on the efficiency of formulating and implementing applicable policies. Based on a sample of Chinese listed companies from 2011 to 2022, this study reveals a significant enhancement of the environmental protection taxes in corporate ESG performance. The finding indicates that implementing environmental protection taxes can effectively enhance ESG performance omnidirectionally. This impact operates mainly through reducing audit fees. These findings enhance and broaden the current body of literature and contribute to a more comprehensive understanding of the impact of macro policies on individual agents.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324010882
    DOI: 10.1016/j.frl.2024.106058
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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).
    2. 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).
    3. Hailin Dong & Juhong Chen & Le Zhang, 2025. "Can Servitization Strategy Improve Corporate Environmental, Social, and Governance (ESG) Performance? Empirical Evidence From Listed Manufacturing Enterprises in China," Discrete Dynamics in Nature and Society, John Wiley & Sons, vol. 2025(1).
    4. Wu, Xiuling & Sun, Xueli, 2025. "Environmental protection tax and green low-carbon development," Finance Research Letters, Elsevier, vol. 86(PA).
    5. Fengzuo Li & Pengjie Na & Salman Mahmood & Xiaolan Wang & Tanveer Ahmed, 2025. "State Ownership and the Sustainable Development of Private Enterprises: Exploring the Role of State Ownership Participation," SAGE Open, , vol. 15(1), pages 21582440251, February.

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