Does <scp>ESG</scp> Performance Affect Supply Chain Concentration? Evidence From China

ABSTRACT This study aims to examine the impact of corporate environmental, social responsibility, and corporate governance (ESG) performance on supply chain concentration in the Chinese capital market. It finds that corporate ESG performance reduces supply chain concentration by increasing firms' information transparency and bargaining power. Additionally, digital transformation positively moderates the relationship between ESG performance and supply chain concentration. Further analyses indicate that the dampening effect of corporate ESG performance on supply chain concentration is more pronounced among firms that are non‐state‐owned and have higher financing costs. These findings offer valuable practical guidance for Chinese listed companies and governments.