Research On The Impact Of Environmental Protection Tax Law On Financing Constraints Of Heavily Polluting

After the reform and opening up,China’s economy has entered a period of rapid development and a new economic outlook with total GDP leaping to the second place in the world in 2010 and GDP per capita surpassing the US$10,000 mark in 2019,creating a "Chinese miracle1" in the world’s economic history and drawing the world’s attention.However,along with the rapid economic growth,a series of environmental problems have come along with it.In the long run,the deterioration of the ecological environment and the "predatory" economic growth model will definitely become a major factor limiting the sustainable and healthy economic growth of China.As the main body of production activities,enterprises are the main producers of pollution,and their emission behavior and environmental performance have an important impact on their financing ability.Under the influence of financing constraints,the company’s investment behavior will also be constrained to a greater extent,so that the company misses many worthy investment projects,and may even threaten the survival and development of the company.In the long run,environmental problems will become the culprit of damaging social and economic benefits.In the current critical period of economic transformation,the environmental risks faced by heavily polluting enterprises have a particularly significant impact on their own survival,upgrading and development that cannot be ignored.In order to improve the ecological environment and dispose of the environmental problems caused by the discharge of enterprises,China’s Environmental Protection Tax Law of the People’s Republic of China has been officially implemented since January 1,2018,and the implementation of this legal system has a significant impact on both the environmental and economic benefits of heavy polluting enterprises in China.This thesis studies the economic consequences of the tax reform from the perspective of financing constraints.Based on the research literature in related fields at home and abroad,this thesis uses externality theory,stakeholder theory,information asymmetry theory and sustainable development theory as the guidance,and takes the A-share listed companies in Shanghai and Shenzhen from 2015 to 2020 as the research samples to study the impact of the implementation of the environmental protection tax law on the financing constraints of heavy polluting enterprises by constructing a double difference model.The study finds that the implementation of the environmental protection tax law alleviates the financing constraints of heavy polluters,and this result is more robust.The study finds that the environmental tax law significantly alleviates the financing constraints of non-state-owned enterprises compared to state-owned enterprises,and significantly alleviates the financing constraints of non-bank-related enterprises compared to bank-related enterprises.In terms of regional differences between the East and West,the environmental tax law significantly alleviates the financing constraints of heavy polluters in the East,while it has no significant impact on heavy polluters in the West and Central regions.On this basis,this thesis explores the impact mechanism of the environmental tax system on the financing constraints of heavy polluters from three perspectives:governance effect,information effect and sustainability effect.The study finds that the environmental tax law mainly alleviates the financing constraints of the enterprises by improving the quality of information disclosure of the heavily polluting enterprises and enhancing the concept of sustainable development of the heavily polluting enterprises.The research in this thesis not only broadens the study of the consequences of the environmental tax law,but also has important practical significance for enhancing the efficiency of government policies and promoting the sustainable and stable development of enterprises.