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Environmental protection tax legislation and corporate reputation in China: A legal perspective

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  • Ran, Zenghong
  • Ji, Pengfei

Abstract

This study investigates the relationship between China's Environmental Protection Tax Law and corporate reputation using panel data from A-share listed companies from 2014 to 2021. Employing a quasi-natural difference-in-differences experimental approach, we determine that the environmental protection tax law enhances corporate reputation, with a more pronounced effect in non-state-owned enterprises. Additionally, the law effectively promotes green investment, which mediates its positive impact on corporate reputation. These findings demonstrate the regulatory effectiveness of environmental taxation in improving corporate reputation and underscore the importance of green investment as a mediating mechanism.

Suggested Citation

  • Ran, Zenghong & Ji, Pengfei, 2025. "Environmental protection tax legislation and corporate reputation in China: A legal perspective," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612325000558
    DOI: 10.1016/j.frl.2025.106790
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    References listed on IDEAS

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    1. Arouri, Mohamed El Hedi & Caporale, Guglielmo Maria & Rault, Christophe & Sova, Robert & Sova, Anamaria, 2012. "Environmental Regulation and Competitiveness: Evidence from Romania," Ecological Economics, Elsevier, vol. 81(C), pages 130-139.
    2. Mark Pritchard & Theresa Wilson, 2018. "Building corporate reputation through consumer responses to green new products," Journal of Brand Management, Palgrave Macmillan, vol. 25(1), pages 38-52, January.
    3. Khanifah Khanifah & Udin Udin & Nor Hadi & Fitri Alfiana, 2020. "Environmental Performance and Firm Value: Testing the Role of Firm Reputation in Emerging Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 96-103.
    4. Liu, Guangqiang & Yang, Zhiqing & Zhang, Fan & Zhang, Nan, 2022. "Environmental tax reform and environmental investment: A quasi-natural experiment based on China's Environmental Protection Tax Law," Energy Economics, Elsevier, vol. 109(C).
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    Cited by:

    1. Fan, Congying & Peng, Ke, 2025. "How does supply chain finance drive corporate green transition? The role of credit resource availability," Finance Research Letters, Elsevier, vol. 86(PA).
    2. Wu, Xiuling & Sun, Xueli, 2025. "Environmental protection tax and green low-carbon development," Finance Research Letters, Elsevier, vol. 86(PA).
    3. Xu, Jing, 2025. "Cybersecurity governance and corporate innovation: evidence from China," Finance Research Letters, Elsevier, vol. 82(C).

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