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Bank branch agglomeration and corporate green transformation: Evidence from China

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  • Teng, Mingming
  • Tan, Weijie

Abstract

This paper examines the impact of bank branch agglomeration around Chinese A-share listed firms on their green transformation. The study finds that bank branch agglomeration around listed firms at 5 km, 10 km, and 20 km significantly contributes to green transformation. The result is still valid after robustness testing. According to the mechanism analysis, the agglomeration of bank branches near enterprises facilitates green transformation by reducing financing constraints, increasing green investments, or enhancing green innovation. These findings provide theoretical supplements and policy recommendations regarding the relationship between the development of regional banking institutions and the green transformation of enterprises.

Suggested Citation

  • Teng, Mingming & Tan, Weijie, 2023. "Bank branch agglomeration and corporate green transformation: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323008504
    DOI: 10.1016/j.frl.2023.104478
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    References listed on IDEAS

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    4. Jianpei Li & Lidong Ma & Bowen Li, 2025. "Financial Agglomeration, Bank Enterprise Distance, and SME Performance: Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 8172-8197, June.
    5. Wang, JiaJun & Du, Xinke & Hou, JiaLe & Si, JingJing & Jin, YanZhi, 2025. "Financial agglomeration, financing constraints, and corporate green technological innovation," Finance Research Letters, Elsevier, vol. 86(PF).
    6. Bai, Zonghang & Ban, Yuanhao & Hu, Haifeng, 2024. "Banking competition and digital transformation," Finance Research Letters, Elsevier, vol. 61(C).
    7. Fan, Congying & Peng, Ke, 2025. "How does supply chain finance drive corporate green transition? The role of credit resource availability," Finance Research Letters, Elsevier, vol. 86(PA).
    8. Shucheng Nie & Guixia Wang, 2025. "The Impact of Government-Led Green Certification on Enterprise Green Transformation—Evidence from Green Factory Recognition," Sustainability, MDPI, vol. 17(5), pages 1-20, March.
    9. Cai, Cen & Wen, Jialian & Cui, Ziyi & Bi, Siyuan, 2025. "The effects of financial agglomeration on exports," International Review of Economics & Finance, Elsevier, vol. 100(C).
    10. Zhang, Shujun & Chen, Dingyang & Zou, Qifeng, 2025. "China's green transformation under the dual incentives of economic growth and environmental protection," International Review of Financial Analysis, Elsevier, vol. 102(C).
    11. Xu, Xuchuan & Yang, Lilin, 2025. "Green bond financing and regional ecological resilience: The role of financial agglomeration mechanisms," Finance Research Letters, Elsevier, vol. 80(C).
    12. Bu, Caiqi & Zhang, Kaixia, 2025. "Can decentralized energy transition policy achieve a sustainable green transformation of high-energy-consuming firms? Evidence from China," Energy Policy, Elsevier, vol. 207(C).

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