Tax enforcement of big data and corporate green innovation

Prior studies show corporate tax policy could impact corporate green innovation, however, the effectiveness of corporate tax policy depends on the intensity of tax enforcement and further fewer studies focus on the effect of tax enforcement of big data on corporate green innovation. Therefore, this study exploits a unique setting from China Golden Tax III enforcement reform with big data techniques to explore the relationship between tax enforcement of big data and corporate green innovation. And it shows that the tax enforcement of big data can positively increase corporate green innovation. Moreover, the above positive relationship is more pronounced in non-state-owned firms and firms with higher degrees of collusion with tax collectors. And further analysis shows that market competition and ESG performance can strengthen the positive relationship between tax enforcement of big data and corporate green innovation. As a result, it shows that tax enforcement of big data can be a driver of corporate green innovation by guaranteeing the execution effectiveness of corporate tax policy.