Environmental taxes, political connections, and firm financialization: Evidence from China's environmental tax reform

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE Finance Research Letters Pub Date : 2025-03-11 DOI:10.1016/j.frl.2025.107178

Zhijiu Yang , Fengyi You , Yanfang Qin , Ge Wu

引用次数: 0

Abstract

This study identifies the impact of environmental taxes on firm financialization. Using a triple-differences (DDD) strategy, we find that the enactment of the Environmental Protection Tax Law significantly inhibits firm financialization, which is primarily driven by firms with political connections. The decline in firm financialization can be attributed to increased investments in R&D and environmental protection, especially for politically connected firms. Further analyses suggest that environmental enforcement and legal environments amplify the inhibitory effect. We argue that the fee-to-tax reform leads environmental protection to the rule of law and reduces potential government-business collusion, which is conducive to long-term environmental governance.

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环境税、政治关系与企业金融化：来自中国环境税改革的证据

本研究确定了环境税对企业金融化的影响。利用三重差异（DDD）策略，我们发现环境保护税法的颁布显著抑制了企业金融化，这主要是由具有政治关系的企业推动的。企业金融化程度的下降可归因于研发和环境保护方面的投资增加，尤其是对有政治关系的企业。进一步分析表明，环境执法和法律环境放大了抑制效应。我们认为，税费改革将环境保护引向法治化，减少了潜在的政商勾结，有利于环境的长期治理。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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