Based on the geographic coordinates of bank branches and firms, this study analyzes the impact of firm-level bank competition on corporate green innovation and its underlying mechanisms. The findings of this study are mainly as follows. First, bank competition promotes corporate green innovation by reducing transaction costs, increasing the possibility and quantity of firms applying for green patents. Second, bank competition increases the share of green innovation while reducing the share of nongreen innovation. Third, environmental regulation strengthens the promotion effect of bank competition on corporate green innovation, and the strengthening effect is greatest when environmental regulation is between its 50th and 75th quantile. The proportion of state-owned banks weakens the promotion effect of bank competition on corporate green innovation. This paper is helpful to understand the impact of the banking system on sustainable economic development.

中文翻译：

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银行竞争促进企业绿色创新？来自银行分行位置的证据

本研究基于银行分支机构和企业的地理坐标，分析企业层面的银行竞争对企业绿色创新的影响及其内在机制。本研究的结果主要如下。首先，银行竞争通过降低交易成本、增加企业申请绿色专利的可能性和数量来促进企业绿色创新。其次，银行竞争增加了绿色创新的份额，同时降低了非绿色创新的份额。第三，环境规制强化了银行竞争对企业绿色创新的促进作用，环境规制在第50-75分位数之间的强化作用最大。国有银行占比削弱了银行竞争对企业绿色创新的促进作用。