Version 1
: Received: 23 October 2024 / Approved: 23 October 2024 / Online: 23 October 2024 (20:03:04 CEST)
How to cite:
Tian, E.; Park, S. O. Environmental Protection Tax (EPT) and Its Influence on Firms' Financial Health and Innovation Capabilities: Evidence from Chinese Listed Companies. Preprints2024, 2024101846. https://doi.org/10.20944/preprints202410.1846.v1
Tian, E.; Park, S. O. Environmental Protection Tax (EPT) and Its Influence on Firms' Financial Health and Innovation Capabilities: Evidence from Chinese Listed Companies. Preprints 2024, 2024101846. https://doi.org/10.20944/preprints202410.1846.v1
Tian, E.; Park, S. O. Environmental Protection Tax (EPT) and Its Influence on Firms' Financial Health and Innovation Capabilities: Evidence from Chinese Listed Companies. Preprints2024, 2024101846. https://doi.org/10.20944/preprints202410.1846.v1
APA Style
Tian, E., & Park, S. O. (2024). Environmental Protection Tax (EPT) and Its Influence on Firms' Financial Health and Innovation Capabilities: Evidence from Chinese Listed Companies. Preprints. https://doi.org/10.20944/preprints202410.1846.v1
Chicago/Turabian Style
Tian, E. and Sung Ook Park. 2024 "Environmental Protection Tax (EPT) and Its Influence on Firms' Financial Health and Innovation Capabilities: Evidence from Chinese Listed Companies" Preprints. https://doi.org/10.20944/preprints202410.1846.v1
Abstract
This study examines the impact of the environmental protection tax (EPT) on the liquidity and green technological innovation of listed companies in China from 2013 to 2023. Using a difference-in-differences (DID) approach, we analyze the short-term financial consequences of the EPT, focusing on liquidity ratios and at the same time its effects on innovation through investments in research and development are examined. The results suggest that the EPT significantly reduces corporate liquidity, particularly in industries with high environmental compliance costs, thereby placing financial pressure on firms. Although the EPT stimulates innovation, the inherent time lag in realizing financial returns from R&D investments exacerbates short-term liquidity problems. This research offers important insights for policymakers seeking to balance sustainability goals with corporate financial health.
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
