A Study On The Impact Of Corporate Income Tax Preferential Policies On Corporate Environmental Responsibility

In recent years,with sustained and rapid development of economy,the contradiction between economic growth and environment has been appear.Pollution incidents all around country especially the smoggy weather in North China has aroused widespread concern of the people of the whole country,environmental problems have endangered people's lives and health.At present,the government vigorously promote green development,taking efficiency and harmony into consideration in the process of economic development and achieve sustainable economic development,to achieve green development,we need to solve the environmental problem in the development process.Corporates are the main producer of society which consume a lot of resources and make a lot of pollution.Stakeholder theory holds that the production and operation of corporates need the support of the stakeholders,corporates in the manufacture of pollution at the same time also need to bear social responsibility,especially the environment responsibility relevant with environment pollution.As the supervisor of market as well as the stakeholder of corporate,government can regulate corporate behavior through legal means and economic means,generally,tax policy is the main economic mean of government.To satisfy stakeholder's requirements,corporates usually take the initiative publish the social responsibility report to let public understand the situation of corporate social responsibility,which provide data support for our research.In "Rational economic man" hypothesis,the behavior of corporate is ed by adult behavior,as a rational economic man,corporate minimizing costs at a given level of output or maximizing the output level at a given cost,tax policy through the disturbance of essential factors and price to affect corporate's output level and non-economic behavior.Tax policy can enhance corporate's environmental responsibility and then let corporates have enough motives to select green production?This paper based on the data of Listed Company Social Responsibility Evaluation System in Hexun Net during 2010 to 2013,we select the corporate environmental responsibility score as the explained variable,and select Effective Tax Rate and tax incentives as the explanatory variable,at the same time,we select ROA,corporate size,LEV,corporate survival time and the market index of the province where the firm is located as control variables,examine the relationship between corporate's Effective Tax Rate and corporate's environmental responsibility.We find that corporate's Effective Tax Rate is positive with Corporate's environmental responsibility,the higher the actual tax burden,the better the environmental performance of the corporate,Moreover,We find that corporate's tax incentives is negative with corporate's environmental responsibility,it shows that corporates fulfill environmental responsibility in pursuit of tax incentives.When take property rights into consideration,we find that state-owned corporate's Effective Tax Rate is positive with corporate's environmental responsibility,but Non-state-owned corporate's Effective Tax Rate in not related with environmental responsibility,which shows that corporate income tax preferential policies have no guiding role to Non-state-owned corporates.At the same time,for corporates in polluting industries,its' Effective Tax Rate is not related with environmental responsibility,for corporates in Non-polluting industries,its' Effective Tax Rate is positive with environmental responsibility.This results indicates that tax incentives policies in Enterprise Income Tax Law are insufficient to lead corporates in polluting industries to select green production.