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Strengthening of rule of law and ESG performance of corporations

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  • Gui, Zhou
  • Lu, Xiaoyu

Abstract

This study examines the impact of China's 2018 Environmental Protection Tax Law on corporate ESG performance. Using a difference-in-differences approach, the tax reform enhances ESG performance, especially for heavily polluting, state-owned, and large eastern enterprises. Debt financing and institutional investors positively influence this relationship. The research adds to our understanding of ESG factors and guides policymakers and investors.

Suggested Citation

  • Gui, Zhou & Lu, Xiaoyu, 2024. "Strengthening of rule of law and ESG performance of corporations," Finance Research Letters, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324007359
    DOI: 10.1016/j.frl.2024.105705
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    References listed on IDEAS

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