Tax Incentives, Common Institutional Ownership, and Corporate ESG Performance
Against the backdrop of sustainable development, enterprises, the general public, and regulatory bodies are exhibiting an escalating level of concern regarding the performance in environmental stewardship, social responsibility, and corporate governance collectively referred to as ESG (Environmental...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
John Wiley & Sons Ltd.
2024
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/31470/1/MDE%2045%2004%202024%202516-2528.pdf https://doi.org/10.1002/mde.4157 |
| _version_ | 1824451140766400512 |
|---|---|
| author | Huang, Chengjie Zhou, Hang Wan Ahmad, Wan Norhayati Saad, Ram Al Jaffri Zhang, Xinrui |
| author_facet | Huang, Chengjie Zhou, Hang Wan Ahmad, Wan Norhayati Saad, Ram Al Jaffri Zhang, Xinrui |
| author_sort | Huang, Chengjie |
| collection | UUM |
| description | Against the backdrop of sustainable development, enterprises, the general public, and regulatory bodies are exhibiting an escalating level of concern regarding the performance in environmental stewardship, social responsibility, and corporate governance collectively referred to as ESG (Environmental, Social Responsibility, and Corporate Governance). This research, from the vantage point of external fiscal policy, investigates the examination of the impact of tax incentives on corporate ESG performance. Drawing upon panel data spanning from 2010 to 2021 at the level of China's A-share listed companies and grounded in the context of accelerated depreciation policy for fixed assets, this study commitment to both identify and empirically test the presence of a significant positive correlation between tax incentives and corporate ESG performance. Our analysis of the financial mechanism and the Research and Development (R&D) mechanism reveals that tax incentives are instrumental in alleviating the financing constraints faced by corporations, thereby augmenting their financial performance. Furthermore, they serve to intensify R&D efforts, thereby fostering the generation of green innovations. In conclusion, our findings underscore that tax incentive policies significantly enhance the ESG performance of enterprises with common institutional shareholdings, an effect attributed to the presence of governance and synergy effects |
| first_indexed | 2025-02-19T02:29:54Z |
| format | Article |
| id | uum-31470 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2025-02-19T02:29:54Z |
| publishDate | 2024 |
| publisher | John Wiley & Sons Ltd. |
| record_format | eprints |
| spelling | uum-314702024-10-20T03:43:37Z https://repo.uum.edu.my/id/eprint/31470/ Tax Incentives, Common Institutional Ownership, and Corporate ESG Performance Huang, Chengjie Zhou, Hang Wan Ahmad, Wan Norhayati Saad, Ram Al Jaffri Zhang, Xinrui HF5601 Accounting Against the backdrop of sustainable development, enterprises, the general public, and regulatory bodies are exhibiting an escalating level of concern regarding the performance in environmental stewardship, social responsibility, and corporate governance collectively referred to as ESG (Environmental, Social Responsibility, and Corporate Governance). This research, from the vantage point of external fiscal policy, investigates the examination of the impact of tax incentives on corporate ESG performance. Drawing upon panel data spanning from 2010 to 2021 at the level of China's A-share listed companies and grounded in the context of accelerated depreciation policy for fixed assets, this study commitment to both identify and empirically test the presence of a significant positive correlation between tax incentives and corporate ESG performance. Our analysis of the financial mechanism and the Research and Development (R&D) mechanism reveals that tax incentives are instrumental in alleviating the financing constraints faced by corporations, thereby augmenting their financial performance. Furthermore, they serve to intensify R&D efforts, thereby fostering the generation of green innovations. In conclusion, our findings underscore that tax incentive policies significantly enhance the ESG performance of enterprises with common institutional shareholdings, an effect attributed to the presence of governance and synergy effects John Wiley & Sons Ltd. 2024 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/31470/1/MDE%2045%2004%202024%202516-2528.pdf Huang, Chengjie and Zhou, Hang and Wan Ahmad, Wan Norhayati and Saad, Ram Al Jaffri and Zhang, Xinrui (2024) Tax Incentives, Common Institutional Ownership, and Corporate ESG Performance. Managerial and Decision Economics, 45 (4). pp. 2516-2528. ISSN 1099-1468 https://onlinelibrary.wiley.com/doi/abs/10.1002/mde.4157 https://doi.org/10.1002/mde.4157 https://doi.org/10.1002/mde.4157 |
| spellingShingle | HF5601 Accounting Huang, Chengjie Zhou, Hang Wan Ahmad, Wan Norhayati Saad, Ram Al Jaffri Zhang, Xinrui Tax Incentives, Common Institutional Ownership, and Corporate ESG Performance |
| title | Tax Incentives, Common Institutional Ownership, and Corporate
ESG Performance |
| title_full | Tax Incentives, Common Institutional Ownership, and Corporate
ESG Performance |
| title_fullStr | Tax Incentives, Common Institutional Ownership, and Corporate
ESG Performance |
| title_full_unstemmed | Tax Incentives, Common Institutional Ownership, and Corporate
ESG Performance |
| title_short | Tax Incentives, Common Institutional Ownership, and Corporate
ESG Performance |
| title_sort | tax incentives common institutional ownership and corporate esg performance |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/31470/1/MDE%2045%2004%202024%202516-2528.pdf https://doi.org/10.1002/mde.4157 |
| work_keys_str_mv | AT huangchengjie taxincentivescommoninstitutionalownershipandcorporateesgperformance AT zhouhang taxincentivescommoninstitutionalownershipandcorporateesgperformance AT wanahmadwannorhayati taxincentivescommoninstitutionalownershipandcorporateesgperformance AT saadramaljaffri taxincentivescommoninstitutionalownershipandcorporateesgperformance AT zhangxinrui taxincentivescommoninstitutionalownershipandcorporateesgperformance |