Workshop’s Topic: Environmental taxation aims to improve firms’ environmental performance by increasing the cost of polluting. We find that highly polluting Chinese firms increase income tax avoidance to offset additional costs caused by China’s Environmental Protection Tax Law. This effect is stronger for firms with greater financial constraints. firms in provinces with higher environmental tax rates and greater emphasis on environmental protection and firms with lower income tax avoidance prior to the law. Further, while the environmental tax on average improves polluting firms’ environmental performance at the cost of their financial performance. these effects are muted for firms that increase income tax avoidance. Overall, our findings suggest that the role of environmental taxation in promoting environmental sustainability is undermined by firms’ income tax avoidance. Our study provides important policy making implications by identifying an unintended consequence of environmental taxation and showing how different taxes interact with each other.
Time and Location: 10:00-12:00 AM (GMT+8), Room A423 (School of Management)
Language: Bilingual (Chinese and English)
|
Introduction of Speakers |
|
Assist. Prof. WU Kaishu University of Waterloo, School of Accounting and Finance |
||
|
|
||
|
|
|
WU Kaishu is an Assistant Professor at the School of Accounting and Finance, University of Waterloo, and a PhD in Accounting at University of Oregon. His research interests include corporate tax planning, tax financial reporting and corporate tax policy. His research results have been published in foreign journals such as The Accounting Review, Advances in Taxation. |
