Format:
1 Online-Ressource (9 p)
Content:
This study examines the impact of China’s Environmental Protection Tax (EPT) Law on corporate ESG performance. The EPT Law significantly improved firms’ overall ESG performance but that this improvement was mainly driven by increases in the environmental performance. The social performance declined significantly after the implementation of the EPT Law, indicating a trade-off between environmental regulation and social responsibility. The increase in production costs caused by the EPT Law was responsible for the decreasing of corporate social responsibility. Our study explores the dual nature of the impact of environmental tax policies on ESG performance and providing evidence for the crowding-out effect of environmental regulation
Language:
English
DOI:
10.2139/ssrn.4407757
