IBSS’s Dr Lei Zhang Publishes Research in FT50 Journal on Climate Beliefs and Corporate Tax Savings in Journal of Business Ethics

A collaborative research paper entitled “Climate Beliefs and Attitudes and Corporate Tax Savings”, co-authored by Dr Lei Zhang as the first and corresponding author from the International Business School Suzhou (IBSS) at Xi’an Jiaotong-Liverpool University (XJTLU) has recently been accepted and published in the Journal of Business Ethics—a leading JCR Q1 and Tier 1* academic journal.

The paper investigates the correlation between local climate beliefs and attitudes (CBA) and corporate tax-saving behaviours. The findings reveal that enterprises headquartered in counties with strong CBA are significantly more inclined to utilise climate-related tax incentives, resulting in lower GAAP effective tax rates.

This research holds multifaceted and far-reaching implications for academia, policymakers, and corporate practitioners alike.

For the academic community, the study enriches the burgeoning literature on the economic impacts of climate beliefs. It sheds new light on how social norms shape corporate financial decision-making—specifically in the underexplored domain of tax planning—thus advancing theoretical understanding in this emerging field.

For policymakers, the research highlights the pivotal role of local climate attitudes in determining the uptake and effectiveness of environmental tax policies. It underscores the necessity of designing tax incentive mechanisms that not only promote green investment but also ensure the stability of public revenue. Furthermore, the study observes a stronger policy response in climate-vulnerable industries and states with formal climate adaptation plans, indicating that aligning formal institutional frameworks with local social norms can significantly enhance policy impact.

Corporate leaders and investors can also derive valuable insights from the research. Firms operating in high-CBA regions may leverage tax savings generated through climate-related incentives to fund their sustainability transition initiatives, aligning financial strategies with stakeholder expectations and evolving regulatory trends. Ultimately, the research advocates for a more integrated approach to corporate tax planning, where environmental, social, and governance (ESG) objectives are systematically embedded into core corporate decision-making processes.

Dr Lei Zhang is currently an Assistant Professor in Accounting at the IBSS, XJTLU. His research interests lie in financial accounting, climate finance, environmental economics, and tax avoidance. His research has been published in leading journals such as Renewable and Sustainable Energy Reviews, African Development Review, European Accounting Review, Journal of Business Ethics (x2), Management International Review, Journal of Travel Research, Energy Economics, Empirical Economics, among others.

The Journal of Business Ethics is a leading international journal (JCR Q1, Tier 1* journal with an impact factor of 6.7) published by Springer. As a highly regarded journal included in the prestigious Financial Times 50 (FT50) ranking, it is recognized globally for its significant influence and rigorous research in the fields of management and business ethics.