Assessing the Impact of Environmental Protection Tax Law on the Market Valuation of High-Pollution Companies: A Quasi-Natural Experiment Approach in China
Journal Title: Journal of Green Economy and Low-Carbon Development - Year 2023, Vol 2, Issue 4
Abstract
Based on the financial panel data of Chinese A-share listed companies from 2015 to 2022, this paper takes the “Fee-to-Tax” reform in environmental protection in 2018 as a quasi-natural experiment and employs the Propensity Score Matching-Difference-in-Differences (PSM-DID) model to explore the impact of the environmental protection tax on the valuation of heavily polluting enterprises. The research results show that the environmental protection tax can significantly promote the valuation increase of heavily polluting enterprises and has passed a series of robustness tests. In addition, the analysis of regional heterogeneity and enterprise ownership heterogeneity further reveals the differences between regions and enterprise ownership. The environmental protection tax has a significant positive impact on the valuation of heavily polluting enterprises in Eastern China and non-state-owned heavily polluting enterprises. It is also further found that the environmental protection tax policy improves the valuation of heavily polluting enterprises through the paths of environmental information disclosure, green technology innovation, and intelligent transformation. In light of these findings, this paper proposes relevant policy recommendations to provide reference for accelerating enterprise transformation and upgrading and promoting steady economic growth.
Authors and Affiliations
Lelai Shi, Hong Lin, Živko Erceg, Yujie Yan
Keywords
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- EP ID EP731984
- DOI https://doi.org/10.56578/jgelcd020401
- Views 72
- Downloads 0
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