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The impact of common ownership between banks and firms on corporate ESG performance: Evidence from China

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  • Wang, Zhiwen

Abstract

This paper examines the impact and mechanisms of common ownership between banks and firms on corporate ESG performance, by using a dataset derived from the lending and equity relationship between Chinese A-share listed companies and banks from 2009 to 2023. This common ownership significantly enhances corporate ESG performance through a financing channel that increases loan size and eases financing constraints, and an information channel that reduces information asymmetry and increases external regulation. The positive effect is particularly evident among firms with lower media attention and heavily polluting industries.

Suggested Citation

  • Wang, Zhiwen, 2025. "The impact of common ownership between banks and firms on corporate ESG performance: Evidence from China," Emerging Markets Review, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:ememar:v:69:y:2025:i:c:s1566014125000949
    DOI: 10.1016/j.ememar.2025.101345
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