IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v75y2025ics0275531925000285.html
   My bibliography  Save this article

The Impact of environmental protection tax on corporate ESG performance and corporate green behavior

Author

Listed:
  • Huang, Youwei
  • Liu, Chaoyang
  • Wang, Li
  • Qi, Yuzhu

Abstract

This study examines the impact of environmental protection tax reform on corporate green behavior and ESG performance. Our empirical analysis reveals that the enactment of environmental protection tax significantly enhances corporate ESG performance. Furthermore, we document that this tax reform influences corporate green behavior through multiple channels: it increases environmental investment, accelerates green technological innovation, and improves financial conditions through tax-related financial incentives. The effect of improved ESG performance is more evident in state-owned enterprises, enterprises in regions with increased tax rates, and small enterprises. The findings of this study have implications for governments and policymakers considering using tax laws to affect corporate ESG performance and corporate green behavior.

Suggested Citation

  • Huang, Youwei & Liu, Chaoyang & Wang, Li & Qi, Yuzhu, 2025. "The Impact of environmental protection tax on corporate ESG performance and corporate green behavior," Research in International Business and Finance, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000285
    DOI: 10.1016/j.ribaf.2025.102772
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531925000285
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2025.102772?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.