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The Impact of Environmental Protection Tax Policy on the Financial Performance of Heavy Pollution Enterprises

  • Authors (legacy)
    Corresponding: Kunjian Zhao
    Co-authors: Lei X.
    Zhao K.
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  • gnest_05750_published.pdf
  • Paper ID
    gnest_05750
  • Paper status
    Published
  • Date paper submitted
  • Date paper accepted
  • Date paper online
DOI
https://doi.org/10.30955/gnj.005750
Graphical abstract
Abstract

Leveraging the implementation of China's environmental protection tax (EPT) policy in 2018 as a focal point, this study employs a quasi-natural experiment via the double-difference method to investigate the EPT's impact on the financial performance (FP) of publicly listed companies in heavily polluting industries. The findings reveal the EPT's sustained and positive dynamic effect on the FP of these enterprises, a trend validated through parallel trend and placebo tests. Furthermore, the research highlights that non-state-owned and large-scale firms exhibit more substantial incentives for enhancing their FP.

Keywords
EPT Heavy polluting enterprises Balanced trend test Placebo test
Cite this article
Zhao, K. and Lei, X. (2024) “The Impact of Environmental Protection Tax Policy on the Financial Performance of Heavy Pollution Enterprises”, Global NEST Journal, 26(3). Available at: https://doi.org/10.30955/gnj.005750.
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  • gnest_05750_published.pdf