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Impact of Environmental Tax on Corporate Sustainable Performance: Insights from High-Tech Firms in China

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  • Xiaomin Zhao

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Jiahui Li

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Yang Li

    (School of Management, Shanghai University, Shanghai 200444, China)

Abstract

High-tech enterprises play an important role in leading the future industrial transformation, and their sustainable development deserves attention. Using data of 263 high-tech listed firms in China, we explore the impact of environmental tax on corporate sustainable performance, and the mediating role of green innovation. The results show that environmental tax positively affects corporate green innovation. However, the impact of environmental tax on the sustainable performance of state-owned enterprises and private enterprises is quite different. For private enterprises, environmental tax has an inverted U-shaped impact on both corporate financial performance and environmental-social performance. Furthermore, green innovation mediates the relationship of environmental tax and financial performance. In contrast with private enterprises, for state-owned enterprises, environmental tax has a negative linear impact on corporate financial performance. There is no empirical evidence supporting the effect of environmental tax on the environmental social performance of state-owned enterprises. The results imply that the government should implement different tax policies according to the firms’ characteristics, to promote the corporate sustainable development, especially state-owned enterprises.

Suggested Citation

  • Xiaomin Zhao & Jiahui Li & Yang Li, 2022. "Impact of Environmental Tax on Corporate Sustainable Performance: Insights from High-Tech Firms in China," IJERPH, MDPI, vol. 20(1), pages 1-13, December.
    • Handle: RePEc:gam:jijerp:v:20:y:2022:i:1:p:461-:d:1016912
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    References listed on IDEAS

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    Cited by:

    1. Yi Yang & Tian Zheng & Jingjing Wu, 2024. "Green taxation, regional green development and innovation: Mechanisms of influence and policy optimization," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-21, December.

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