The impact of environmental tax laws on heavy-polluting enterprise ESG performance: A stakeholder behavior perspective.

Environmental taxation is an essential tool employed by governments to compel polluting enterprises to undergo green transformation, thereby achieving sustainable development. This paper uses Differences-in-Differences (DID) approach to assess the impact of the China's environmental tax law on the ESG performance of heavily polluting industries. Furthermore, it examines the moderating effect of stakeholder behavior on the relationship between the environmental tax law and the ESG performance of firms. The research findings indicate that the environmental tax law significantly enhances the ESG performance of heavy polluting enterprises by improving the environmental factor. However, heterogeneity is observed based on ownership characteristics and regional variations. Auditors, mass media and corporate ethical behavior exhibit a significant positive moderating effect on the causal relationship between the environmental tax law and the ESG performance of heavily polluting enterprises. This study contributes to a clearer understanding of the intrinsic relationship between environmental tax laws and ESG performance, and offers insights from the perspective of stakeholder behavior for formulating a path towards sustainable development in the country, thereby providing policy lessons for numerous developing countries worldwide.

The influence of environmental tax reform on corporate profit margins-based on the empirical research of the enterprises in the heavy pollution industries.

The deteriorating global environment has attracted wide attention in various countries. How to curb environmental pollution and achieve sustainable economic growth has become an urgent problem that we must face. As an effective tool for pollution control, environmental tax has been implemented in many developed countries and has achieved good results. As the largest developing country in the world, China introduced the first environmental tax law in its history in December 2016, which is regarded as a major reform of the green tax system. To explore the implementation effect of environmental tax in China, this paper takes 3867 Chinese listed enterprises (2015-2020) in Shanghai and Shenzhen A shares as the research sample and explores the microeconomic effect of environmental tax reform using the difference in difference (DID) method. It is concluded that the environmental tax reform can produce a positive impact on the corporate profit margins while curbing the enterprise pollution behavior. This positive effect comes from the investment improvement effect and the cost-saving effect, and this effect is heterogeneous between different regions and property rights enterprises. Therefore, the design of the tax system must be implemented with different measures. Environmental taxes have achieved positive policy results in China, contributing to sustainable economic growth. This tax reform has an important reference value for the developing countries in the industrialization stage.