Research on the Impact of VAT Carryover Refund Policy on Corporate "Greenwashing" Behavior
Research Article
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Research on the Impact of VAT Carryover Refund Policy on Corporate "Greenwashing" Behavior

Ziyi Yan 1*
1 Shandong University of Finance and Economics
*Corresponding author: 15606447102@163.com
Published on 30 July 2025
Volume Cover
AEMPS Vol.206
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-295-9
ISBN (Online): 978-1-80590-296-6
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Abstract

Greenwashing behavior leads to environmental and economic inefficiencies, seriously hindering sustainable economic development. The introduction of the VAT carry-forward tax refund policy in China in 2018 offers the possibility of reducing the overall level of greenwashing in the market. This paper uses the data of non-financial listed companies on the A-share market from 2012 to 2022 as samples, and employs a difference-in-differences model to study the impact of the VAT carry-forward tax refund policy on the greenwashing behavior of Chinese enterprises. A mediating model is also established to explore the influencing mechanism. The conclusion is that the implementation of the VAT carry-forward tax refund policy, by promoting green innovation among enterprises, has to some extent curbed their greenwashing behavior. Enterprises that are state-owned, located in the central and western regions, and have a higher capital intensity are more affected by this policy, and the inhibitory effect on their greenwashing behavior is more pronounced.

Keywords:

Value-added tax carry-forward refund, Greenwashing, Green innovation

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Yan,Z. (2025). Research on the Impact of VAT Carryover Refund Policy on Corporate "Greenwashing" Behavior. Advances in Economics, Management and Political Sciences,206,66-75.

References

[1]. Huang Songbing, Xie Xiaojun, Zhou Huifen. The "Isomorphic" Behavior of Corporate Greenwashing [J]. China Population, Resources and Environment, 2020, 30(11): 139-150.

[2]. Zhang D. Green financial system regulation shock and greenwashing behaviors: Evidence from Chinese firms [J]. Energy Economics, 2022, 111: 106064.

[3]. Huang Songbing, Chu Fang. Does Third-Party Verification Help to Suppress Corporate "Greenwashing"? [J]. Chinese Certified Public Accountants, 2021, (08): 38-42. DOI: 10.16292/j.cnki.issn1009-6345.2021.08.009.

[4]. Cao J, Faff R, He J, et al. Who's greenwashing via the media and what are the consequences? Evidence from China [J]. Abacus, 2022, 58(4): 759-786.

[5]. Lee M T, Raschke R L. Stakeholder legitimacy in firm greening and financial performance: What about greenwashing temptations? ☆ [J]. Journal of Business Research, 2023, 155: 113393.

[6]. Zhang D. Can environmental monitoring power transition curb corporate greenwashing behavior? [J]. Journal of Economic Behavior & Organization, 2023, 212: 199-218.

[7]. He L, Gan S, Zhong T. The impact of green credit policy on firms’ green strategy choices: green innovation or green-washing? [J]. Environmental Science and Pollution Research, 2022, 29(48): 73307-73325.

[8]. Ruiz-Blanco S, Romero S, Fernandez-Feijoo B. Green, blue or black, but washing–What company characteristics determine greenwashing? [J]. Environment, Development and Sustainability, 2022, 24(3): 4024-4045.

[9]. Xie Y, Qin J, Jin Z, et al. VAT Neutrality and Corporate Cash Holdings—Based on the Research of Uncredited VAT Refund Policy [J]. China Finance and Economic Review, 2023, 12(2): 49-71.

[10]. Yue Shumin, Xiao Chunming. Can VAT carry-forward tax refunds alleviate enterprises' financing constraints? - Empirical evidence based on cash-cash flow sensitivity [J]. Finance and Trade Economics, 2023, 44(01): 51-67. DOI: 10.19795/j.cnki.cn11-1166/f.2023.01.003.

[11]. Zhang D. Are firms motivated to greenwash by financial constraints? Evidence from global firms' data [J]. Journal of international financial management & accounting, 2022, 33(3): 459-479.

[12]. Wang H, Yang J, Zhu N. Does Tax Incentives Matter to Enterprises’ Green Technology Innovation? The Mediating Role on R&D Investment [J]. Sustainability, 2024, 16(14): 5902.

[13]. Zhang Ming, Jiang Ou Chen, Cai Zhiqiang. Value-added Tax Carryforward Tax Rebate Policy and Enterprise Green Innovation [J]. Accounting and Finance Monthly, 2025, 46(08): 52-61. DOI: 10.19641/j.cnki.42-1290/f.2025.08.008.

[14]. Cai Weixian, Shen Xiaoyuan, Li Bingcai, et al. The Innovative Incentive Effect of VAT Carryforward Tax Rebate Policy [J]. Finance Research, 2022, (05): 31-48. DOI: 10.19477/j.cnki.11-1077/f.2022.05.005.

[15]. Li Yifei. VAT Carryforward Tax Rebate and Enterprise Human Capital Upgrading [J]. World Economy, 2023, 46(12): 115-140. DOI: 10.19985/j.cnki.cassjwe.2023.12.007.

[16]. Liu Bai, Wang Xinzhu. The "Risk Compensation" Effect of Enterprise Green Innovation on Stock Returns [J]. Economic Management, 2021, 43(07): 136-157. DOI: 10.19616/j.cnki.bmj.2021.07.009.

[17]. Ma Y, Feng G F, Yin Z, et al. ESG disclosures, green innovation, and greenwashing: All for sustainable development? [J]. Sustainable Development, 2025, 33(2): 1797-1815.

References

[1]. Huang Songbing, Xie Xiaojun, Zhou Huifen. The "Isomorphic" Behavior of Corporate Greenwashing [J]. China Population, Resources and Environment, 2020, 30(11): 139-150.

[2]. Zhang D. Green financial system regulation shock and greenwashing behaviors: Evidence from Chinese firms [J]. Energy Economics, 2022, 111: 106064.

[3]. Huang Songbing, Chu Fang. Does Third-Party Verification Help to Suppress Corporate "Greenwashing"? [J]. Chinese Certified Public Accountants, 2021, (08): 38-42. DOI: 10.16292/j.cnki.issn1009-6345.2021.08.009.

[4]. Cao J, Faff R, He J, et al. Who's greenwashing via the media and what are the consequences? Evidence from China [J]. Abacus, 2022, 58(4): 759-786.

[5]. Lee M T, Raschke R L. Stakeholder legitimacy in firm greening and financial performance: What about greenwashing temptations? ☆ [J]. Journal of Business Research, 2023, 155: 113393.

[6]. Zhang D. Can environmental monitoring power transition curb corporate greenwashing behavior? [J]. Journal of Economic Behavior & Organization, 2023, 212: 199-218.

[7]. He L, Gan S, Zhong T. The impact of green credit policy on firms’ green strategy choices: green innovation or green-washing? [J]. Environmental Science and Pollution Research, 2022, 29(48): 73307-73325.

[8]. Ruiz-Blanco S, Romero S, Fernandez-Feijoo B. Green, blue or black, but washing–What company characteristics determine greenwashing? [J]. Environment, Development and Sustainability, 2022, 24(3): 4024-4045.

[9]. Xie Y, Qin J, Jin Z, et al. VAT Neutrality and Corporate Cash Holdings—Based on the Research of Uncredited VAT Refund Policy [J]. China Finance and Economic Review, 2023, 12(2): 49-71.

[10]. Yue Shumin, Xiao Chunming. Can VAT carry-forward tax refunds alleviate enterprises' financing constraints? - Empirical evidence based on cash-cash flow sensitivity [J]. Finance and Trade Economics, 2023, 44(01): 51-67. DOI: 10.19795/j.cnki.cn11-1166/f.2023.01.003.

[11]. Zhang D. Are firms motivated to greenwash by financial constraints? Evidence from global firms' data [J]. Journal of international financial management & accounting, 2022, 33(3): 459-479.

[12]. Wang H, Yang J, Zhu N. Does Tax Incentives Matter to Enterprises’ Green Technology Innovation? The Mediating Role on R&D Investment [J]. Sustainability, 2024, 16(14): 5902.

[13]. Zhang Ming, Jiang Ou Chen, Cai Zhiqiang. Value-added Tax Carryforward Tax Rebate Policy and Enterprise Green Innovation [J]. Accounting and Finance Monthly, 2025, 46(08): 52-61. DOI: 10.19641/j.cnki.42-1290/f.2025.08.008.

[14]. Cai Weixian, Shen Xiaoyuan, Li Bingcai, et al. The Innovative Incentive Effect of VAT Carryforward Tax Rebate Policy [J]. Finance Research, 2022, (05): 31-48. DOI: 10.19477/j.cnki.11-1077/f.2022.05.005.

[15]. Li Yifei. VAT Carryforward Tax Rebate and Enterprise Human Capital Upgrading [J]. World Economy, 2023, 46(12): 115-140. DOI: 10.19985/j.cnki.cassjwe.2023.12.007.

[16]. Liu Bai, Wang Xinzhu. The "Risk Compensation" Effect of Enterprise Green Innovation on Stock Returns [J]. Economic Management, 2021, 43(07): 136-157. DOI: 10.19616/j.cnki.bmj.2021.07.009.

[17]. Ma Y, Feng G F, Yin Z, et al. ESG disclosures, green innovation, and greenwashing: All for sustainable development? [J]. Sustainable Development, 2025, 33(2): 1797-1815.

Cite this article

Yan,Z. (2025). Research on the Impact of VAT Carryover Refund Policy on Corporate "Greenwashing" Behavior. Advances in Economics, Management and Political Sciences,206,66-75.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: Digital Transformation in Global Human Resource Management

ISBN: 978-1-80590-295-9(Print) / 978-1-80590-296-6(Online)
Editor: Florian Marcel Nuţă Nuţă, An Nguyen
Conference website: https://www.icemgd.org/committee.html
Conference date: 26 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.206
ISSN: 2754-1169(Print) / 2754-1177(Online)

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