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Does tax policy affect corporate environmental investment?

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  • Li, Jingrong
  • Liu, Ping

Abstract

Using data from China's publicly traded firms from 2012 to 2022, this study examined the connection between corporate eco-friendly investment and taxation policies. The findings indicate that tax policies escalated firms’ environmental protection investments. Financing constraints played a mediating role in the correlation between tax strategies and ecological investment. Disparities emerged regarding the impact of tax policies on environmental protection investment among state-owned enterprises (SOEs) and non-SOEs.

Suggested Citation

  • Li, Jingrong & Liu, Ping, 2025. "Does tax policy affect corporate environmental investment?," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016957
    DOI: 10.1016/j.frl.2024.106666
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    References listed on IDEAS

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