Investment Incentives and Corporate Social Responsibilities : Does Managerial Long-Termism Matter?

We investigate the effect of the accelerated depreciation Policy (ADP) on the corporate social responsibility (CSR) of Chinese A-share firms from 2010 to 2016. The results of difference-in-differences estimation reveal that the ADP has a considerable effect on CSR performance, particularly in employee responsibility, environmental management, and social value contribution. The ADP helps to improve CSR performance by relaxing financial constraints and mitigating managerial myopia. This effect is driven by the value relevance of corporate reputation and is more pronounced in firms with higher visibility and superior corporate governance quality. Our research reveals that tax policy is influential in value-relevant corporate decision-making