Tax Planning and Sustainable Growth: The Mediating Role of R&D Investment in China

Yaru Liang (), Jinglun Zhang () and Cheng Cheng ()
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Yaru Liang: Shanghai Normal University Tianhua College, Business School
Jinglun Zhang: University Sains Malaysia, School of Communication
Cheng Cheng: Shanghai Normal University Tianhua College, Business School

A chapter in Proceedings of the 2024 6th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2024), 2025, pp 147-159 from Springer

Abstract: Abstract Amid increasing external uncertainties, firms are prioritizing the optimization of internal resources to drive sustainable growth. This study examines the economic impact of tax planning on corporate sustainable growth, focusing on the mediating role of R&D investment in this process. Using data from Chinese A-share listed biomedical companies from 2013 to 2022, our findings reveal that corporate tax planning not only enhances sustainable growth directly but also indirectly promotes it by encouraging R&D investments. While R&D expenditures may initially dampen short-term growth due to extended development cycles, they ultimately catalyze innovation and technological advancements that support long-term sustainability. This research contributes to the economic literature by providing an empirical analysis of tax policy’s role in fostering sustainable corporate growth within developing economies. Our dual-pathway findings underscore the strategic value of tax planning as a tool for sustainable innovation and competitive advantage. Insights from this study are particularly valuable for policymakers and business strategists focused on strengthening corporate sustainability and economic resilience.

Keywords: tax planning; firm sustainable growth; R&D investment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-676-5_17

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DOI: 10.2991/978-94-6463-676-5_17

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