Research On The Impact Of Environmental Protection Tax On The Financial Performance Of Heavily Polluting Enterprises

Due to the rapid growth rate of global economy,if China wants to keep up with the pace of global development,it must actively carry out globalization and industrialization.But at the same time of China’s rapid economic development,China’s environmental situation has been greatly affected,and environmental pollution and environmental damage problems have emerged one after another.Recently,China has been committed to alleviating environmental pollution caused by rapid economic development,while promoting economic development to a higher quality.China has actively adopted various measures to treat from the source of pollution or the end of pollution,among them,the environmental protection tax,which officially implemented in January 2018,is a tax measure that directly treats at the end of pollution.However,when solving the problem of environmental pollution,both the pollution fee system and the newly implemented environmental protection tax law will increase the production costs of heavily polluting enterprises to a certain extent,which may crowd out R&D funds and other funds of enterprises.But from a long-term perspective,will environmental protection tax have a positive impact on the financial performance in heavily polluting enterprises?Innovation is an important measure to achieve a win-win situation between high-quality economic development and environmental protection,so what role does it play in the impact of environmental protection tax on financial performance?After combing through domestic and international literature,this paper provides a theoretical analysis of the relationship between environmental protection tax and the financial performance in heavily polluting enterprises based on externality theory,Porter’s hypothesis theory,technological innovation theory,and sustainable development theory.Then,taking China’s Shanghai and Shenzhen A-share listed companies from 2015 to 2021 as a sample,a double difference model was established,and the stepwise test regression coefficient method was used to test the changes in the financial performance of highly polluting enterprises under the influence of environmental protection tax and the influence of technological innovation between the two.Subsequently,the heavily polluting enterprises were further grouped according to different property rights,regional nature and scale nature to test whether environmental protection tax has different impacts on the financial performance and whether the role of technological innovation is heterogeneous.It is found that:(1)Environmental protection tax has a positive promoting effect on the financial performance in heavily polluting enterprises,and technological innovation plays a partmediating role between them.(2)The group study of the sample enterprises with different property rights,regional nature and scale nature found that the impact of environmental protection tax on the financial performance was different in different regional heavily polluting enterprises,and the part-intermediary role of technological innovation was heterogeneous among enterprises with different property rights and scale nature.Among heavily polluting enterprises,different from other regions,the environmental protection tax policy can significantly improve the financial performance of enterprises in the eastern region.In state-owned enterprises,the part-mediating effect of technological innovation is more obvious than in non-state-owned ones.Compared with small-scale enterprises,the part-mediating effect of technological innovation is more pronounced in large-scale enterprises.Finally,based on the empirical results,this paper puts forward corresponding feasible policy recommendations.Based on the implementation of the environmental protection tax law,this paper studies and analyzes the impact of environmental protection tax on the financial performance and the role of technological innovation in between the two from a micro perspective in heavily polluting enterprises.Then this paper further verifies the heterogeneity,regional heterogeneity and scale heterogeneity of the influence of environmental protection tax on the financial performance under the role of technological innovation in heavily polluting enterprises.Finally,this paper provides more extensive empirical evidence for studying the micro effect and implementation effect of environmental protection tax.