The Impact Of Bank Competition On Enterprise ESG Performance

Presently,our economy enters high quality development level.As a Social and economic cell,an enterprise’s ESG(Environmental,Social and Governance)performance is the basis for high-quality and sustainable economic development.For enterprises,ESG needs to be implemented through a series of R&D and operation management activities,and the most critical factor to ensure these activities is working capital.Having stable and abundant sources of funds is the key to the company’s production and operation.Bank loan is the main channel of enterprise financing in China at present,and the competition of banks has a vital influence on enterprises.However,whether and how the competition of banks affects the ESG performance of enterprises is still unclear.Therefore,it is of great theoretical and practical significance to explore the relationship between bank competition and ESG performance of enterprises.Taking Chinese a-share listed companies from 2010 to 2020 as samples,this paper explores the action mode and influence path of bank competition on ESG performance of enterprises.The empirical research results show that:(1)the degree of bank competition is positively correlated with ESG performance of enterprises;(2)According to the group test of ownership nature,compared with state-owned enterprises,the degree of bank competition in private enterprises has a stronger correlation with ESG performance;(3)The influence of bank competition on ESG of enterprises is different among different regions,and the effect on the eastern region is more significant;(4)Further tests show that the financing constraint represented by loan cost plays a significant mediating role in the relationship between the degree of bank competition and ESG of enterprises,that is,bank competition reduces the loan cost of enterprises,and then improves the ESG performance of enterprises.This paper through studies the bank competition affect corporate ESG performance,demonstrate how bank competition is the financial markets,real business efficiency and the social development,and thus affect the ESG performance of the enterprise,the results not only provide a reference for the government,the bank policy advice,to the enterprise financing options,ESG practices and long-term sustainable development also has a guiding significance.