Bank Branch Expansion and Corporate ESG Performance: A Dual Perspective Based on Financing Constraints and Agency Costs

Abstract

 Against the backdrop of the "dual carbon" goals and sustainable development, ESG performance has gradually become a key indicator for measuring the long-term value enhancement of enterprises. This paper examines the impact and mechanisms of bank branch expansion on corporate ESG performance, using a sample of China's A-share listed companies from 2009 to 2021, based on the dual transmission paths of financing constraints and agency costs. The findings reveal that bank branch expansion significantly improves corporate ESG ratings. Further mechanism analysis shows that this effect is primarily achieved through two pathways: first, bank branch expansion alleviates corporate financing constraints; second, it reduces agency costs, thereby significantly enhancing corporate ESG performance. These conclusions provide a theoretical basis for optimizing regional financial resource allocation and guiding corporate ESG practices.