What does this research mean for the field?

China's water resource tax policy significantly reduces supply chain transparency among water-sensitive firms by increasing information costs and attention risks. Novelty: ClaimNovelty.NOVEL_FINDING. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To evaluate the impact of China's water resource tax pilot reform on corporate supply chain transparency and determine the mechanisms driving firm disclosure behavior.

September 5, 2026Australian Accounting ReviewOpen Access

Unintended Effect of Water Regulation: Does Water Resource Tax Inhibit Corporate Supply Chain Transparency?

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Authors

DLDuan LiuHunan University ZXZhe XuGuangdong University of Technology ZXZourui XiaHunan University

Discussion

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Implication

Difference-in-differences analysis reveals reduced supply chain transparency in water-sensitive firms following water taxation, highlighting unintended regulatory spillovers.

Key Points

To evaluate the impact of China's water resource tax pilot reform on corporate supply chain transparency and determine the mechanisms driving firm disclosure behavior.
Quasi-natural experiment exploiting China's water resource tax (WRT) pilot reform.
Multi-period difference-in-differences (DID) regression framework to evaluate corporate disclosure of suppliers and customers.
Water resource tax reform significantly reduces supply chain transparency among water-sensitive firms, discouraging explicit disclosure of supplier and customer information.
The transparency decrease is mediated by heightened information costs and elevated external attention risks.
Policy impacts vary significantly based on regional water endowments, competitive environment, environmental horizons, and firm ownership structure.

Cite This Study

Liu et al. (2026) studied this question.

synapsesocial.com/papers/6a9bd3f16b95aff0620eb323 https://doi.org/10.1111/auar.70032

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September 5, 2026Australian Accounting ReviewOpen Access

Unintended Effect of Water Regulation: Does Water Resource Tax Inhibit Corporate Supply Chain Transparency?

View Full Paper

Ask AI

Bookmark

Authors

DLDuan LiuHunan University ZXZhe XuGuangdong University of Technology ZXZourui XiaHunan University

Discussion

Member takes

Implication

Difference-in-differences analysis reveals reduced supply chain transparency in water-sensitive firms following water taxation, highlighting unintended regulatory spillovers.

Key Points

To evaluate the impact of China's water resource tax pilot reform on corporate supply chain transparency and determine the mechanisms driving firm disclosure behavior.
Quasi-natural experiment exploiting China's water resource tax (WRT) pilot reform.
Multi-period difference-in-differences (DID) regression framework to evaluate corporate disclosure of suppliers and customers.
Water resource tax reform significantly reduces supply chain transparency among water-sensitive firms, discouraging explicit disclosure of supplier and customer information.
The transparency decrease is mediated by heightened information costs and elevated external attention risks.
Policy impacts vary significantly based on regional water endowments, competitive environment, environmental horizons, and firm ownership structure.

Cite This Study

Liu et al. (2026) studied this question.

synapsesocial.com/papers/6a9bd3f16b95aff0620eb323 https://doi.org/10.1111/auar.70032

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