The Relationship Between Environmental Taxes, Technological Innovation and Corporate Financial Performance: a Heterogeneous Analysis of Micro-Evidence from China

As a formal environmental regulation, tax is important for the green upgrading of industrial structure. In order to explore impact mechanism on corporate financial performance, this paper constructs difference-difference (DID) model with two-way fixed effects based data Chinese A-share manufacturing listed companies from 2015 2019. We have found that taxes contribute directly and significantly improvement performance technological innovation, in some degree, produces mediating effect. Financing constraints not only negatively moderate relationship between innovation; they also inhibit innovation effect as part indirect influence. heterogeneity analysis, direct more significant among State-owned enterprises (SOEs) eastern enterprises, moderating financing non-SOEs enterprises. This advances understanding economic consequences levies perspective property regional heterogeneity. It provides empirical evidence support applicability Porter’s hypothesis China makes suggestions optimization policy