Accelerated depreciation policy of fixed assets and corporate sustainable development: a perspective of ESG

Chengxue Tan, Fanqi Zou, Yuting Li and Xing Sun

Applied Economics, 2025, vol. 57, issue 17, 2144-2160

Abstract: As awareness of sustainable development increases, the corporate ESG performance has gradually become a subject of widespread attention. Based on the data of A-share listed companies in China from 2011 to 2018, starting from an exploration of the accelerated depreciation policy for fixed assets (ADP), we employ a Staggered-DID model to assess the impact of tax incentive policies on corporate ESG performance. Our findings reveal that the implementation of ADP can significantly improve corporate ESG performance, with this promotional effect being more pronounced in companies that are non-state-owned, capital-intensive, mature, and at a higher level of marketization. We primarily validate the impact mechanisms from the perspectives of improving corporate financial position and innovation. Our research provides policy insights for utilizing tax tools to enhance corporate ESG and promote sustainable development and contributes richer micro-level evidence for comprehensively assessing the non-economic effects of ADP and ESG-driven factors.

Date: 2025
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DOI: 10.1080/00036846.2024.2322580

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