Corporate Cash Dividends and the Environmental Protection Tax: Moral Consistency in relation to Corporate Social Responsibility

This study empirically investigates the impact of cash dividends issued by A-share listed companies on their environmental tax payments from 2018 to 2023.The findings indicate a significant negative correlation between proactive cash dividends implemented by corporate executives and the environmental protection tax payments made by these enterprises. This inverse relationship is mediated by the enhancement of corporate environmental responsibility fulfillment by executives, aligning with the framework of moral consistency. Specifically, as executives fulfill responsibilities to shareholders through increased cash dividends, they will adhere to ethical consistency in fulfilling its environmental responsibilities, thereby reducing environmental protection tax burdens. Further analysis reveals that executives' green perceptions and the intensity of environmental regulations exert a moderating effect, attenuating the relationship between corporate cash dividends and environmental protection tax liabilities. Notably, the impact of cash dividends on the reduction of environmental protection taxes is more pronounced in enterprises that receive external attention, are in a period of decline, or are non-heavily polluting. This study expands the theoretical framework of corporate social responsibility by elucidating the synergistic mechanism between responsibility to shareholders and environmental responsibilities. It provides empirical evidence to guide enterprises in balancing financial objectives with social responsibilities under China's green development policies. It is recommended that the government enhances ethical consistency in corporate behavior through tax incentives to encourage environmental protection investments, while guiding executives to strategically formulate dividend policies to achieve sustainable development