Proceedings of the 2025 4th International Conference on Big Data Economy and Digital Management (BDEDM 2025)

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Shifting Costs, Shifting Strategies: How China’s Environmental Fee-to-Tax Reform Drives Financialization in Listed Companies

Authors
Boming Lyu1, *
1York University, 4700 Keele St, North York, ON, M3J 1P3, Canada
*Corresponding author. Email: boming_lyu@yahoo.com
Corresponding Author
Boming Lyu
Available Online 14 May 2025.
DOI
10.2991/978-94-6463-710-6_15How to use a DOI?
Keywords
Environmental protection law; Corporate financialization; Fee to tax reform; Difference-in-difference; Policy impact analysis
Abstract

This study investigates the impact of China’s 2018 environmental fee-to-tax reform on corporate financialization among A-share listed firms. By using a Difference-in-Differences (DID) model, we find that the reform significantly reduces financialization, especially for non-state-owned enterprises (non-SOE), firms without financially experienced managers, and those located in eastern regions (developed areas). Our findings suggest that higher regulatory costs and stricter environmental requirements shift firms’ financial resources from financial investments to production and operating activities. This research contributes to illustrate how environmental policies can influence financial strategies in different corporation, providing insights for policymakers to balance environmental governance with economic development in the future.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 4th International Conference on Big Data Economy and Digital Management (BDEDM 2025)
Series
Advances in Intelligent Systems Research
Publication Date
14 May 2025
ISBN
978-94-6463-710-6
ISSN
1951-6851
DOI
10.2991/978-94-6463-710-6_15How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Boming Lyu
PY  - 2025
DA  - 2025/05/14
TI  - Shifting Costs, Shifting Strategies: How China’s Environmental Fee-to-Tax Reform Drives Financialization in Listed Companies
BT  - Proceedings of the 2025 4th International Conference on Big Data Economy and Digital Management (BDEDM 2025)
PB  - Atlantis Press
SP  - 126
EP  - 141
SN  - 1951-6851
UR  - https://doi.org/10.2991/978-94-6463-710-6_15
DO  - 10.2991/978-94-6463-710-6_15
ID  - Lyu2025
ER  -