The influence of China Environmental Protection Tax Law on firm performance – evidence from stock markets

Yu He · Chuanhao Wen · Jia He

43 citations0/0 files storedApplied Economics Letters

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Political Influence and Corporate Strategies Corporate Finance and Governance Corporate Social Responsibility Reporting

Abstract

This study examines the influence of China Environmental Protection Tax (EPT) Law on firm performance, which is proxied by stock prices. Using the event study methodology, we find that most sectors experience negative market reactions, indicating that the EPT Law will increase environmental costs and hurt firm performance. Firms’ political connections and fundamentals are related to the market reactions. The different impacts of political connections on market reactions have been detected between the two events related to the EPT Law. Our results are robust to diverse fixed effects and potential endogeneity issues.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 43 citations exist upstream.

References

1985Using daily stock returns 2007Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly partially privatized firms☆2008The empirical analysis of the determinants for environmental technological change: A research agenda 2009Political connections and the process of going public: Evidence from China 2003‘Optimal’ pollution abatement—whose benefits matter, and how much?2006Environmental compliance by firms in the manufacturing sector in Mexico 2014How are political connections valued in China? Evidence from market reaction to CEO succession

Cited by

2024Environmental protection tax law and corporate ESG performance 2020Valuation Impacts of Environmental Protection Taxes and Regulatory Costs in Heavy-Polluting Industries 2024Environmental protection tax policy and corporate risk-taking: Evidence from China 2024Can the Water Resource Fee-to-Tax Reform Promote the “Three-Wheel Drive” of Corporate Green Energy-Saving Innovations? Quasi-Natural Experimental Evidence from China

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.