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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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    4. David L. Deephouse & Suzanne M. Carter, 2005. "An Examination of Differences Between Organizational Legitimacy and Organizational Reputation," Journal of Management Studies, Wiley Blackwell, vol. 42(2), pages 329-360, March.
    5. 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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