IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v58y2023ipbs1544612323008504.html
   My bibliography  Save this article

Bank branch agglomeration and corporate green transformation: Evidence from China

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323008504
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104478?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yao Gao & Jian Xu, 2023. "Bank Competition and Firm Labor Investment Efficiency: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(7), pages 2283-2297, May.
    2. Heng Liang & Zhitao Wang & Runkai Niu, 2023. "Does environmental regulations promote the green transformation of high polluters?," Applied Economics Letters, Taylor & Francis Journals, vol. 30(7), pages 927-931, April.
    3. Du, Kerui & Cheng, Yuanyuan & Yao, Xin, 2021. "Environmental regulation, green technology innovation, and industrial structure upgrading: The road to the green transformation of Chinese cities," Energy Economics, Elsevier, vol. 98(C).
    4. Zhang, Xiaoqian & Huang, Bin, 2022. "Does bank competition inhibit the formation of zombie firms?," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 1045-1060.
    5. Jingxian Zou & Guangjun Shen, 2023. "The impact of tax policy on firm debt maturity: Evidence from China's VAT reform," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(2), pages 295-317, April.
    6. Wang, Qian & Du, Zhuo-Ya, 2022. "Changing the impact of banking concentration on corporate innovation: The moderating effect of digital transformation," Technology in Society, Elsevier, vol. 71(C).
    7. Xing, Chao & Zhang, Yuming & Tripe, David, 2021. "Green credit policy and corporate access to bank loans in China: The role of environmental disclosure and green innovation," International Review of Financial Analysis, Elsevier, vol. 77(C).
    8. Li, Chengming & Wang, Yilin & Zhou, Zhihan & Wang, Zeyu & Mardani, Abbas, 2023. "Digital finance and enterprise financing constraints: Structural characteristics and mechanism identification," Journal of Business Research, Elsevier, vol. 165(C).
    9. Berger, Allen N. & Chen, Ruiyuan (Ryan) & El Ghoul, Sadok & Guedhami, Omrane, 2020. "Who wins and who loses from bank geographic deregulation? Analysis of financially constrained and unconstrained firms," Journal of Corporate Finance, Elsevier, vol. 65(C).
    10. Hu, Yan & Che, Dexin & Wu, Fei & Chang, Xi, 2023. "Corporate maturity mismatch and enterprise digital transformation: Evidence from China," Finance Research Letters, Elsevier, vol. 53(C).
    11. Cave, Joshua & Keasey, Kevin & Mascia, Danilo V., 2022. "Bank branch deposit competitiveness and deposit growth: Granular data and a new measure of competitiveness," Economics Letters, Elsevier, vol. 210(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bai, Zonghang & Ban, Yuanhao & Hu, Haifeng, 2024. "Banking competition and digital transformation," Finance Research Letters, Elsevier, vol. 61(C).
    2. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Wen, 2023. "Bank connections, corporate social responsibility and low-carbon innovation," Energy Policy, Elsevier, vol. 183(C).
    2. Junhao Zhong & Zhenzhen Wang & Yunfeng Deng, 2025. "Driving the Green Transformation of Enterprises: The Role of Patent Insurance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(2), pages 1373-1391, March.
    3. Guo, Xiaoxu & Liu, Nan, 2024. "The industrial internet and green technology innovation," Finance Research Letters, Elsevier, vol. 66(C).
    4. Jiarong Shi & Zihao Jiang & Biao Luo, 2022. "Economic policy, regulatory policy, or soft policy: Which category of policy can effectively improve the green innovation of Chinese wind power industry?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2284-2298, September.
    5. Sun, Yabin, 2024. "Bank competition and firm greenwashing: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).
    6. Xiaoyang Zhao & Dangdang Cui & Chante Jian Ding, 2025. "Towards sustainable development: Institutions, perceptions, and innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 560-572, January.
    7. Hu, Yi & Jin, Shuchang & Ni, Juan & Peng, Kai & Zhang, Lei, 2023. "Strategic or substantive green innovation: How do non-green firms respond to green credit policy?," Economic Modelling, Elsevier, vol. 126(C).
    8. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    9. Chuan Tian & Guohui Feng & Huanyu Li, 2023. "Empirical Study on the Impact of Urbanization and Carbon Emissions under the Dual-Carbon Framework Based on Coupling and Coordination," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    10. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    11. Bei Liu & Jinmin Wang & Xinle Tong & Zhihua Zhou & Zhaoxuan Qiu, 2024. "Institutional investor shareholding and the quality of corporate innovation: Moderating effects based on internal and external environment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(1), pages 326-338, January.
    12. Xueyang Wang & Xiumei Sun & Haotian Zhang & Chaokai Xue, 2022. "Digital Economy Development and Urban Green Innovation CA-Pability: Based on Panel Data of 274 Prefecture-Level Cities in China," Sustainability, MDPI, vol. 14(5), pages 1-21, March.
    13. Yanli Ji & Jie Xue & Kaiyang Zhong, 2022. "Does Environmental Regulation Promote Industrial Green Technology Progress? Empirical Evidence from China with a Heterogeneity Analysis," IJERPH, MDPI, vol. 19(1), pages 1-23, January.
    14. Zhu, Junpeng & Lin, Boqiang, 2022. "Resource dependence, market-oriented reform, and industrial transformation: Empirical evidence from Chinese cities," Resources Policy, Elsevier, vol. 78(C).
    15. Chun-Wei Chen & Junxiong Zheng & Tin-Chang Chang & Muhammad Sadiq & Bushra Tufail, 2025. "Green finance policy and heavy pollution enterprises: a supply-chain and signal transmission of green credit policy for the environment—Vietnam perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 2317-2335, January.
    16. Chendi Li & Lei Wang & Yang Liu, 2023. "The Impact Factors and Spatial Spillover of Industrial Green Development: Based on Cities in the Northwest Segment of the Silk Road Economic Belt," Sustainability, MDPI, vol. 16(1), pages 1-18, December.
    17. Yuan, Na & Gao, Yihong, 2022. "Does green credit policy impact corporate cash holdings?," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    18. Shang, Hua & Jiang, Li & Pan, Xianyou & Pan, Xiongfeng, 2022. "Green technology innovation spillover effect and urban eco-efficiency convergence: Evidence from Chinese cities," Energy Economics, Elsevier, vol. 114(C).
    19. Wang, Xiaolin & Ye, Yingying, 2024. "Environmental protection tax and firms’ ESG investment: Evidence from China," Economic Modelling, Elsevier, vol. 131(C).
    20. Wang, Rui & Mao, Keqi, 2024. "How does bank competition affect trade-mode transformation? Evidence from Chinese export enterprises," Journal of Multinational Financial Management, Elsevier, vol. 72(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323008504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.