 How does bank branch expansion affect ESG: Evidence from Chinese commercial banksZongtao Tian, Yongchang Shen and Zhibin Chen Economic Analysis and Policy, 2024, vol. 82, issue C, 502-514 Abstract: This research examines the relationship between bank branch expansion and ESG through the lens of geographical proximity. By utilizing panel data from Chinese listed firms during the 2010–2020 period, our results provide robust evidence that bank branch expansion promotes firms to fulfill ESG. Through increased bank competition and reduced distance between banks and enterprises, bank branch expansion contributes to ESG by strengthening financial support and optimizing informational efficiency. Additional analyses reveal that bank branch expansion enhances ESG in firms with financial backgrounds on boards, state-owned enterprises, firms with higher digital transformation and located in a superior legal environment. Overall, these findings reveal the influence of bank branch expansion on the non-financial behavior of firms and provide new empirical evidence for exploring the motivation for ESG. Keywords: Bank branch expansion; ESG; Slack resource; Stakeholder theory; Geographic Proximity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:82:y:2024:i:c:p:502-514 DOI: 10.1016/j.eap.2024.03.025 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
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