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ESG disclosure and firm long-term value: The mediating effect of tax avoidance

Author

Listed:
  • Yuan, Wei
  • Zhang, Minqiang
  • Guo, Xiaomei
  • Jiang, Yihuo

Abstract

Exploiting a large dataset consisting of listed companies on Chinese stock exchanges from 2015 to 2024, this study investigates the profound effects of ESG disclosure on firm value in the long run, with an extraordinary focus on the role of tax avoidance. The empirical evidence suggests that ESG disclosure substantially boosts firm long-term value and tax avoidance represents one of the key economic channel. Additionally, further research reveals that this positive relationship is large among small firms and non-state-owned firms. Overall, this research advances the finance literature on the implications of ESG for corporate outcomes.

Suggested Citation

  • Yuan, Wei & Zhang, Minqiang & Guo, Xiaomei & Jiang, Yihuo, 2025. "ESG disclosure and firm long-term value: The mediating effect of tax avoidance," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009869
    DOI: 10.1016/j.frl.2025.107728
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    References listed on IDEAS

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