The Impact of Water Resource Tax on the Sustainable Development in Water-Intensive Industries: Evidence from Listed Companies
Round 1
Reviewer 1 Report
Comments and Suggestions for AuthorsHow can water resources tax promote sustainable development 2 in water-intensive industries?
Major concerns
1. Mention briefly how zomibification measured, early in the paper.
2. Abstract is too long. Currently, it is 266 words. Generally, an abstract should not be more than 150 words. Also, line 25 and 26 does not make sense, as firms do not accelerate entry into a recession.
3. Much of the introduction is difficulty to read – poor English
4. The first part of the literature review (Institutional Background) should go into the introduction. This part through about line 204 is not a literature review but a factual discussion that belongs in an introduction.
5. More should be added to the literature review regarding the effect of an excise tax (water fees) on costs, pass-throughs, profit margins, etc.
6. To me, your hypothesis 1 and 2 are similar. Consider 1 or 2hypotheses and 1 or 2 corollaries. Also, hypothesis formulation and explanation should go at the end of the introduction.
7. If a tax furthers the withdrawal of zombie companies from the market, as you state on lines 270/271, then how can the tax increase zombification.
8. You need to explain the FN-CHK method as mentioned on line 390.
9. Line 392. I don’t understand, explained variable 𝑑𝑟𝑖𝑡(zombification degree) is the sum of coefficients 𝛽0～𝛽5
10. What is measuring the degree of “blood transfusion” in line 394?
11. You need to explain how OP, LP, and OLS are used to calculate total factor productivity. This is very unclear.
12. It is unclear how DID is constructed. Is it a 1 if 2016 and later and in Hubei province. Thus the period is before and after 2016 and the ID is in Hubei province or not. Also, why Hubei province and 2016?
13. You need to discuss the descriptive statistics. What inferences can I draw from them? Define leverage, bank loan, and any other variables of interest. Also, what is zrop, zrlp, and zrols? What percentage of R&D staff, this is a percentage of what? Also, what is the number of id?
14. Should include treatment ID and Period ID in the regression analysis. Also, what is Tobin in the variables shown in table 1.
15. What is Y in formula 3? Parallel trends results based on formula 3 needs more explanation.
16. Not sure why Figure 1 shows that none of the coefficients in the before years were significant, but they all were significant in the after years. What is on the Y axis in the figure?
17. Need to explain, perhaps synthetic DID more thoroughly.
18. Better to include the SOE versus non-SOE and locational herogeneity in earlier tables using dummy variables and dummy variables interacted with DID variables.
19. Table 10 shows that the water tax increases operating debt and current liability ratios. However, it does not show that water taxes cause zombification by causing higher debt and current liability ratios as you hypothesize.
20. I don’t understand what you did in Table 11. What is environmental uncertainty and industry adjustment?
21. I am not convinced regarding the finding that among high water consuming companies, the imposition of a water tax increases cash flow. This finding is counter-intuitive, and may suggest something else is going on.
Minor issues
1. First sentence in the abstract should be divided into two sentences
2. Reword and divide into two sentences in introduction the sentence starting on line 40. It is currently not readable.
3. Divide the sentence starting on line 79 into two or even three sentences. It is unreadable in its current form. Same with the sentence starting on line 86.
4. Put a before water resource tax in various places
5. Sentence starting on line 181 should be divided into two or more. It is currently unreadable
6. Sentence starting on line 191 should be divided into two or more. It is currently unreadable
7. Lines 215 and 216 replace raise with rise
8. Sentences from 216-228 should be divided into two or more. It is currently unreadable
9. Line 370 change to little attention has been paid.
10. Line 450, don’t say hypothesis 1 is proved, but rather you have found evidence to support hypothesis 1.
11. Sentence from line 522 should be divided into two or more. It is currently unreadable.
12. Sentence from line 569 should be divided into three or more. It is currently unreadable.
13. Sentence from line 581 should be divided into two or more. It is currently unreadable.
14. Line 701, change to then decline” rather then decline phase completely;
15. Take out To on line 731, so start the sentence with Improve.
16. Same with line 746.
Comments on the Quality of English Language1. First sentence in the abstract should be divided into two sentences
2. Reword and divide into two sentences in introduction the sentence starting on line 40. It is currently not readable.
3. Divide the sentence starting on line 79 into two or even three sentences. It is unreadable in its current form. Same with the sentence starting on line 86.
4. Put a before water resource tax in various places
5. Sentence starting on line 181 should be divided into two or more. It is currently unreadable
6. Sentence starting on line 191 should be divided into two or more. It is currently unreadable
7. Lines 215 and 216 replace raise with rise
8. Sentences from 216-228 should be divided into two or more. It is currently unreadable
9. Line 370 change to little attention has been paid.
10. Line 450, don’t say hypothesis 1 is proved, but rather you have found evidence to support hypothesis 1.
11. Sentence from line 522 should be divided into two or more. It is currently unreadable.
12. Sentence from line 569 should be divided into three or more. It is currently unreadable.
13. Sentence from line 581 should be divided into two or more. It is currently unreadable.
14. Line 701, change to then decline” rather then decline phase completely;
15. Take out To on line 731, so start the sentence with Improve.
16. Same with line 746.
Author Response
Please see the attachment.
Author Response File: 
Author Response.pdf
Reviewer 2 Report
Comments and Suggestions for AuthorsDear Authors,
Firstly, I would like to commend you on the comprehensive work and the insightful analysis presented in your paper. It's evident that a considerable amount of effort and expertise has been invested in this study, which significantly contributes to our understanding of the topic. As I proceed with my review, I would like to offer some constructive feedback to further enhance the impact and clarity of your valuable research.
1. Consider refining the title for better clarity and focus. A suggestion could be „Impact of Water Resources Tax on Sustainable Development in Water-Intensive Industries: Evidence from China's Listed Companies.”
2. The abstract should succinctly summarize key findings, implications, and novelty. It currently provides a detailed narrative but could be more concise. Highlight the main findings and their significance in a more condensed format. The initial sentences could be more concise. Instead of starting with a detailed context of China's water governance dilemma, begin with a direct statement about the study's focus. For example: „This study examines the impact of China's water resources tax reform (2016-2020) on the zombification of high water-consuming enterprises.”
3. The introduction sets a good stage but could benefit from a more direct statement of the gap in the literature your study addresses.
4. The methodology section is comprehensive but somewhat dense. Consider breaking it down into more digestible sub-sections, detailing the data source, sample selection, model specification, and variable definition more clearly. Please explain why you chose this method of analysis for your study, specifying its limitations as well. To enhance the precision and accuracy of your terminology, you might consider refraining from using the term 'impact,' as it typically implies a more in-depth causality analysis, which seems beyond the scope of your current methodology. Instead, terms like 'influence' or 'effect' might more accurately describe the nature of your analysis.
5. Expand the discussion section to better connect your findings with existing literature. Discuss why your results might differ from or corroborate previous studies.
6. The conclusion is quite extensive and covers multiple aspects. Aim for conciseness by focusing on the most critical findings and their implications. This will make the conclusion more impactful and easier for readers to digest. Strengthen the conclusion by succinctly summarizing the key findings, their implications, and the contribution to the existing body of knowledge.
7. Acknowledge any limitations of your study and suggest avenues for future research. This could include different methodological approaches, other sectors, or comparative studies with different countries or regions.
8. Please check the bibliographic sources, source 32, as you forgot to delete the general template.
9. While the academic language is appropriate, some sentences are complex and could be simplified for clarity. Ensure the manuscript is free from grammatical errors and typos.
Best regards.
Comments on the Quality of English LanguageWhile the academic language is appropriate, some sentences are complex and could be simplified for clarity. Ensure the manuscript is free from grammatical errors and typos.
Author Response
Please see the attachment.
Author Response File: Author Response.pdf
Reviewer 3 Report
Comments and Suggestions for AuthorsThis is an interesting and valuable study. The manuscript performs well in statistical analysis, writing, and formatting. I have only a few suggestions for the author to refer to when making revisions.
1) “This paper brings enterprise zombification indexes in to fully measure the factors that influence the zombification of enterprises.” Unfortunately, there is a lack of clear explanation for the index zombification and relative formula (1).
2) This point may not be relevant to this paper. But changing expenses into taxes will change the cost of the enterprise, this is also related to the industry, scale, or region of the enterprise. This article may be appropriately discussed in the discussion section, or further research may be conducted in the future.
Author Response
Please see the attachment.
Author Response File: Author Response.pdf
Round 2
Reviewer 1 Report
Comments and Suggestions for AuthorsAuthors,
1. In response to item 1, please provide an explicit example as to how zombification is calculated. The example should include numbers and variables so I can follow how the index is calculated.
2. Change enlightenment to implications in the abstract.
3. First sentence of #5 must be rewritten as it is unreadable in its current form.
Comments on the Quality of English Language
OK, except for the comment regarding the first sentence in #5 of the author's reply
Author Response
Please find the attachment.
Author Response File: Author Response.pdf
