Research Article
Environmental Pollution Control Investment and Corporate Tax Avoidance
@INPROCEEDINGS{10.4108/eai.18-11-2022.2326884, author={Juan Luo}, title={Environmental Pollution Control Investment and Corporate Tax Avoidance}, proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China}, publisher={EAI}, proceedings_a={ICEMME}, year={2023}, month={2}, keywords={corporate tax avoidance; environmental pollution control investment; financial pressure}, doi={10.4108/eai.18-11-2022.2326884} }- Juan Luo
Year: 2023
Environmental Pollution Control Investment and Corporate Tax Avoidance
ICEMME
EAI
DOI: 10.4108/eai.18-11-2022.2326884
Abstract
Environmental pollution control investment is an important financial guarantee for local environmental pollution control. Will excessive capital investment cause tax avoidance by micro-enterprises? This paper uses the data onto Shanghai and Shenzhen A-share listed companies from 2009 to 2017 to empirically study the relationship between environmental pollution control investment and corporate tax avoidance. The results of the study found that there is a significant negative correlation between environmental pollution control investment and corporate tax avoidance. The results are still valid after the robustness test. We use the mediation effect to test and find the investment has increased the financial pressure on the local government, forcing the government to strengthen taxation supervision, and thus inhibiting corporate tax avoidance. This article provides suggestions for the coordinated governance of environmental governance and corporate governance in China.
