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Does Bank Going Public Affect the Borrowers' ESG Performance? Evidence From a Quasi‐Natural Experiment in China

Author

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  • Hao Huang
  • Li Tang
  • Ling Zhao

Abstract

Using a quasi‐natural experiment of commercial bank initial public offerings (IPOs), this study examines how bank listings affect borrowing firms' environmental, social, and governance (ESG) performance. The results reveal significant improvements in borrowers' ESG performance, particularly in the environmental and social dimensions, after lending banks go public. The positive effect is stronger for private enterprises, firms in highly marketized regions, and borrowers of city or rural commercial banks. The impact of national joint‐stock commercial bank listings is comparatively weaker. Mechanism analyses reveal that bank IPOs enhance lenders' bargaining power and strengthen ESG disclosure requirements, driving improvements in borrowers' ESG outcomes.

Suggested Citation

  • Hao Huang & Li Tang & Ling Zhao, 2026. "Does Bank Going Public Affect the Borrowers' ESG Performance? Evidence From a Quasi‐Natural Experiment in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(2), pages 1232-1252, June.
    • Handle: RePEc:bla:acctfi:v:66:y:2026:i:2:p:1232-1252
    DOI: 10.1111/acfi.70209
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    References listed on IDEAS

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