The Impact of ESG Performance on Corporate Value in Listed Sports Companies: The Mediating Role of Intangible Assets and Moderating Role of Policy Environment

Abstract

This study investigates how ESG (environmental, social, and governance) performance influences the corporate value of publicly listed sports companies in China, with a focus on the mediating role of intangible assets and the moderating effect of the policy environment. Analyzing panel data from 41 A-share sports firms over 2009–2023 using a two-way fixed-effects model, the findings reveal that a robust ESG performance significantly enhances corporate value by strengthening brand equity and optimizing resource allocation. Intangible assets, particularly brand value, serve as pivotal mediators in translating ESG efforts into market value. Furthermore, the policy environment plays a critical moderating role: state-owned enterprises (SOEs) exhibit amplified ESG-driven value creation due to stronger policy support and resource advantages. Robustness checks, including an instrumental variable analysis, reinforce the reliability of these conclusions, highlighting the interplay of ESG, intangible assets, and policy in driving long-term competitiveness within the sports sector. By addressing the unique dynamics of ESG in the sports industry, this research bridges a gap in the sector-specific literature and underscores ESG’s strategic importance in fostering sustainable business growth. The results provide actionable insights for corporate managers to align ESG strategies with brand development and for policymakers to design targeted frameworks that incentivize sustainable practices.

1. Introduction

As global climate change and environmental problems intensify, sustainable development has emerged as a worldwide goal [1]. In China, as the economic landscape evolves and the principles of green development take root, businesses emerge as vital contributors to economic endeavors, significantly influencing the advancement of sustainable practices and the attainment of carbon neutrality objectives [2]. In recent years, the nation has consistently prioritized the development of ecological civilization and green initiatives, leading to the ESG (environmental, social, and governance) assessment framework becoming a key benchmark for evaluating corporate sustainability [3,4]. The sustainable growth of the sports industry has increasingly captured attention due to its vital role in enhancing public health and fostering cultural exchange [5]. Given their close connection to environmental protection, social responsibility, and governance, listed sports companies inherently have an advantage in implementing ESG principles. Under these circumstances, by integrating green development strategies, sports enterprises not only enhance their social influence and international competitiveness but also contribute to global sustainable development.

Most studies suggest that a good ESG performance can create added value for companies by enhancing their corporate image, attracting capital, and optimizing resource allocation. Hall et al. (2009) introduced a framework that highlights the influence of intangible assets on a company’s worth, underlining the significant contributions of brand equity and corporate reputation to a firm’s overall financial success [6]. The management and protection of intangible assets have become one of the main ways for sports companies to enhance their market value. In the sports industry, brand and intellectual property, as core components of intangible assets, are especially important for sports companies. At the same time, the policy environment also significantly affects the connection between ESG performance and corporate value [4,7]. Against the backdrop of increasingly deepening “dual carbon” goals and social responsibility policies, the sports industry needs to transform external pressures from the policy environment into internal driving forces to promote sustainable development, in order to comply with national environmental protection requirements and enhance its market competitiveness [8]. According to the study by Rahat et al. (2024), companies with higher ESG scores typically achieve higher valuation premiums in capital markets and have lower long-term capital costs [9]. Furthermore, the study by Lee et al. (2023) reveals a noteworthy positive relationship between the balanced–weighted ESG score and corporate performance [10].

However, the sports industry, as a unique field that combines both economic benefits and social value, follows a development logic that significantly differs from traditional industries. What sets the sports industry apart is its high level of social attention, its ability to generate economic benefits, and its business model, which often relies on extensive public support and social resources. At the same time, in fulfilling social responsibilities, sports companies not only enhance their brand image but also increase fan loyalty, thereby boosting their corporate value [11,12,13]. Research indicates that ESG performance can enhance corporate value by easing capital limitations, mitigating business risks, and strengthening reputation systems [14,15]. According to Chen et al. (2010), there is a positive relationship between a green brand image, green satisfaction, and green trust with green intangible assets. This correlation not only elevates a brand’s value but also considerably increases investor confidence in the company’s prospects for future growth [16]. Similarly, sports enterprises also face the core challenge of balancing ESG investments with short-term economic gains. Studies suggest the existence of a “threshold effect” regarding ESG (environmental, social, and governance) practices and corporate value. This implies that the economic benefits of implementing ESG initiatives become substantial only after a company achieves a specific scale or resource capacity [17]. Large sports enterprises are more likely to convert the potential value of ESG practices through brand influence, while small and medium-sized enterprises, due to resource limitations, struggle to accumulate enough intangible assets. Additionally, formalized or superficial ESG practices may undermine the genuine value of the brand and even lead to public skepticism regarding corporate actions [18]. On the other hand, the sports industry is highly policy-driven, and government support and industry regulations play a significant role in shaping corporate ESG practices. In regions with favorable policy environments, incentive measures help companies reduce the cost of ESG practices, thus improving their economic performance [19]. Research by Hu et al. (2016) suggests that, with policy support, sports companies can more effectively carry out low-carbon venue construction and promote environmentally friendly events, thereby achieving a win–win situation for both economic and social benefits [20]. However, the impact of the policy environment is not evenly distributed; if policy support is insufficient or incentive measures are not precisely targeted, some sports companies may struggle to sustain ESG practices due to resource scarcity [21]. At the same time, policy uncertainty may interfere with long-term corporate planning [22].

Drawing on this context, the present study focuses on sports firms publicly traded on the Shanghai and Shenzhen Stock Exchanges from 2009 to 2023. Its objective is to investigate how environmental, social, and governance (ESG) performance influences the enhancement of corporate value in these listed sports entities, particularly through the intermediary impact of intangible assets, while also examining the moderating role of the policy landscape in this dynamic. This approach is grounded in resource dependence theory [23]; this study identifies the key factors affecting ESG performance and corporate value in sports companies, systematically analyzes their combined impact on corporate value, and explores the independent effects of these factors in different contexts. This study’s key contributions highlight three primary areas: (1) By examining the mediating role of intangible assets between ESG performance and corporate value in listed sports companies, this research broadens the current ESG theoretical model and provides a new perspective on how sports companies can optimize their ESG strategies to enhance their corporate value. (2) Integrating resource dependence theory, this study further analyzes how the policy environment moderates the effect of ESG performance on a company’s worth, addressing the lack of research in the current literature concerning the influence of the policy environment as a moderating factor. It also suggests that optimizing corporate governance structures can enhance the efficiency of ESG management, thus improving a company’s ability to adjust to a complicated market landscape. (3) This research offers concrete evidence for decision-makers, clarifying the key role of intangible assets in enhancing corporate value in listed sports companies and uncovering the influence of the policy environment in this process. The findings offer theoretical support and practical guidance for optimizing the regulatory framework and encouraging the implementation of strategic and sustainable ESG practices within organizations.

The organization of this paper is as follows: Section 2 provides the theoretical framework and the research hypotheses, examining the connection between ESG performance, intangible assets, and the value of the company, along with the influence of the policy environment as a moderating factor. Section 3 describes the research methods and the design of the model, including variable definitions and research steps. Section 4 showcases the findings from the empirical analysis. Section 5 concludes with a summary of the results of this study and provides suggestions for future research.

2. Literature Review and Research Hypotheses

2.1. ESG Rating and Corporate Value of Listed Sports Companies

Corporate value refers to the overall market valuation of a business, typically reflecting the current worth of its upcoming cash inflows [24,25]. In recent years, ESG performance has gradually become one of the key factors influencing corporate value [26,27]. Current studies on the connection between ESG performance and corporate value indicate that ESG performance directly or indirectly impacts a company’s market value through multiple channels [28]. Resource dependence theory indicates that a strong ESG performance can provide companies with essential resources, including brand reputation, customer loyalty, and investor support. These intangible assets are crucial for enhancing a business’s market competitiveness and for an extended period of development [29]. For example, green transformation and the fulfillment of social responsibilities can improve a company’s performance in safeguarding the environment and promoting social accountability, thereby increasing consumer recognition and loyalty to the brand, which subsequently enhances the company’s market share and earnings potential [30,31]. Lee et al. (2022) pointed out that companies with a strong ESG performance not only set the foundation for a positive image in the marketplace but also reduce environmental risks and social conflicts, thereby enhancing trust and support from the capital market [29]. Additionally, companies with transparent governance and well-established anti-corruption mechanisms tend to implement ESG strategies more effectively, thereby boosting investor confidence and their corporate value [32,33].

As active participants in social responsibility, listed sports organizations ought to allocate a greater focus and consideration to ESG issues, especially under the dual pressures of policy and market forces. Through the enhancement of their environmental, social, and governance (ESG) performance, organizations can not only reduce the multiple risks they face but also drive sustainable development through enhanced social trust and transparency [34,35]. Furthermore, during China’s economic transformation and upgrading, the environmental, social, and governance (ESG) performance of publicly traded companies is regarded as a key driver in fostering robust and sustainable economic growth [36,37,38]. Therefore, this research puts forth the following hypothesis:

Hypothesis 1. 

A positive correlation exists between environmental, social, and governance (ESG) performance and the corporate value of publicly traded sports organizations.

2.2. ESG Rating and Intangible Assets of Listed Sports Companies

Intangible assets are key resources that do not have a physical form but create value and competitive advantages. They largely determine a company’s position and competitive edge in the market [6,39,40,41]. The Resource-Based View (RBV) theory posits that a firm’s competitive advantage is primarily derived from its distinctive resources, especially those intangible assets that are difficult to imitate [42,43]. Robust performance in environmental, social, and governance (ESG) criteria can catalyze the enhancement of these intangible assets, thereby accelerating the company’s value growth and consolidating its competitive position in the market [44,45]. Furthermore, a company’s success often depends not only on its internal intangible assets but also on how it interacts with external stakeholders. Specifically, a company’s social responsibility initiatives, environmental protection efforts, and sound governance structures can strengthen stakeholder trust and support, which in turn drives the accumulation and appreciation of intangible assets [45,46]. Tripopsakul et al. (2022) indicated that the environmental, social, and governance (ESG) performance of a company plays a crucial role in bolstering consumer trust and fostering brand loyalty, especially for companies that excel in domains including environmental conservation, social accountability, and governance practices. Such companies are more inclined to cultivate a favorable brand reputation [47]. Moreover, ESG performance can effectively strengthen intangible assets and social capital, improving corporate reputations [48], which increases brand loyalty and ensures long-term stability in customer relationships [49,50]. Therefore, this research posits the subsequent hypothesis:

Hypothesis 2. 

A positive correlation exists between their ESG rating and intangible assets in listed sports companies.

2.3. The Role of Mediation in Intangible Assets in the Context of the Relationship Between ESG Performance and Corporate Value

According to Stakeholder Theory, a company’s environmental, social, and governance performance indirectly drives the accumulation of intangible assets by enhancing connections with stakeholders, thereby enhancing the total worth of the organization [51,52]. Specifically, ESG performance influences a company’s interactions with external stakeholders, crafting elusive treasures like brand prestige, social influence, and a stellar reputation. The accumulation of these intangible assets ultimately translates into the company’s market value and financial returns. By fulfilling social responsibilities, companies can not only enhance their brand image but also increase their social capital. The appreciation of these intangible assets eventually converts into the company’s market value [53]. Specifically, a company’s ESG performance enhances public recognition of the brand and boosts consumer loyalty [28]. These intangible assets, as intermediaries, bridge the connection between ESG performance and corporate market value, thereby driving the overall increase in corporate value. Liu et al. (2017) pointed out that a company’s effectiveness in governance, environmental sustainability, and corporate social responsibility not only improves its social and environmental reputation but also enhances the value of its intangible assets [54]. This view was validated by Wanday et al. (2022), who conducted a study that revealed that a good ESG performance improves financial performance by boosting brand awareness and public recognition, which indirectly drives the overall market value of the company [55]. Additionally, Sassen and Handoyo et al. emphasized that a strong ESG performance effectively reduces external risks, enhancing a company’s stability and attractiveness in capital markets [56,57]. Consequently, this research posits the subsequent hypothesis:

Hypothesis 3. 

Intangible assets play a positive mediating role in the dynamic interplay between ESG performance and the worth of a corporation.

2.4. The Impact of the Policy Landscape on the Connection Between ESG Performance and Corporate Worth in the Sports Industry

The regulatory landscape plays a crucial role in influencing a firm’s strategic choices, market positioning, and overall sustainability in the long term. Specifically, in the context of moderating the relationship between environmental, social, and governance (ESG) performance and corporate value, studies have revealed that national policies wield both direct and subtle influences on a company’s performance in environmental, social, and governance (ESG) matters. Sun et al. (2024) proposed that the policy environment, by providing external support and resource assurance, can indirectly enhance the market worth and financial results of a company [58]. According to Haque et al. (2018), national policies not only drive improvements, within the frameworks of a company’s environmental protection initiatives, social responsibility efforts, and governance frameworks, but also incentivize companies to optimize their ESG performance through policy-driven mechanisms [59]. When companies face government requirements for sustainable development, environmental protection, and social responsibility, the policy environment often becomes a key factor driving strategic changes, especially in developing countries where the impact of policy changes is more pronounced [60]. With government support for the sports industry, sports companies can enhance their ESG performance by integrating resources and adopting environmentally friendly innovations, thus improving their market competitiveness and brand value [61]. Especially under the “dual carbon” goals, policies have played an essential part in advancing the environmental shift within the sports sector. Policy measures such as subsidies and tax reductions have encouraged sports companies to invest in and innovate for sustainable development. Through various moderating effects, the policy environment significantly influences the association between environmental, social, and governance (ESG) performance and corporate value. Furthermore, government policy support not only provides necessary resources but also motivates businesses to enhance their ESG performance, thereby driving long-term corporate value growth through an enhanced brand value, social capital, and market recognition. Therefore, this research posits the subsequent hypothesis:

Hypothesis 4. 

The policy environment moderates the connection between ESG performance and the worth of a corporation.

3. Research Methods and Data

3.1. Sample Selection and Data Sources

This study focuses on A-share listed companies within the sports industry, utilizing data from the period spanning 2009 to 2023 as the primary subject of investigation. The data of listed companies’ annual reports are all from the CSMAR database. ESG rating data come from Shanghai Huazheng ESG. The sports industry encompasses a range of economic activities that produce and deliver sports products to society. These products include both tangible goods and intangible services, reflecting the broad scope of the industry. By integrating similar economic sectors, the sports industry supports a dynamic ecosystem that fuels societal engagement and economic growth. In this study, we adopt the classification framework and definitions of sports concept stocks provided by Eastmoney and Huaxi Securities. Using these criteria, we identified 41 publicly listed companies that represent the sports industry. These firms form the core dataset for our analysis, providing a robust foundation for examining industry trends and dynamics. This study addresses the samples in the following manner: (1) eliminating samples with missing financial data and analyst-related feature data; (2) eliminating companies that have been ST and ST* each year based on historical information, as well as companies with negative net assets and other incomplete data; (3) to mitigate the influence of outliers, the upper and lower 1% quantiles of continuous variables are trimmed. After processing, this paper obtained a total of 472 samples in 14 years, including 41 listed companies. In terms of data analysis, this study mainly uses panel data regression analysis to explore the characteristics and influencing factors of listed companies in the sports industry.

3.2. Variable Setting

• Explanatory variables (independent variables): corporate ESG performance (ESG)

This study utilizes the China Securities ESG rating as a proxy variable. The rating system, developed by the China Securities Index, draws on established international methodologies and practical experiences, while integrating the core principles of global environmental, social, and governance (ESG) standards. Additionally, it incorporates China’s unique national context and the specific characteristics of its capital market to create a tailored and comprehensive ESG evaluation framework. The ESG ratings for securities issuers in China’s A-shares and Hong Kong stocks are assessed across three dimensions: environmental, social, and corporate governance.

2.

Explained variable (dependent variable): company value (Value)

In this article, the book-to-market ratio is selected as a surrogate variable for assessing the value of publicly traded companies. The book-to-market ratio is determined by dividing the market price per share by its book value. Since the book value of equity represents its original cost, this ratio illustrates the relationship between the market value of a company’s outstanding equity and the original investment made by its early investors to fund the business. In other words, it shows how much profit has been brought to shareholders. The calculation method is book-to-market ratio = company stock price/company net asset value per share.

3.

Mediating variable: intangible asset (Brand)

In this paper, the “cash paid to purchase intangible assets” in the financial statements is selected as the proxy variable. This indicator generally refers to the cash expenditure of a company on purchasing intangible assets (such as patents, trademarks, copyrights, software, etc.). It is reasonable to use this item as the brand value variable, as it reflects the company’s investment and efforts in brand building and helps to evaluate the firm’s enduring worth and market position.

4.

Moderating variables: policy support (Soe)

This research employs the characteristics of the enterprise as a moderating factor to assess the influence of policy support. State-owned enterprises are designated a value of 1, while non-state-owned enterprises receive a value of 0 in order to evaluate the moderating effects [62,63].

5.

Control variables

The control variables chosen for this research encompass the following: company size (Size), leverage ratio (lev), operating cash flow (Cashflow), profitability (Roe), growth potential (Growth), and ownership concentration (Top10). A comprehensive overview of these variables can be found in

Table 1. Research model.

Variable	Symbol	Definition
Explained variable	Corporate ESG performance	Huazheng ESG score
Explanatory variable	Company value	(Total enterprise assets + 1) Logarithm
Control variable	Firm size (Size)	Total assets/total responsibility
	leverage ratio (lev)	Net cash flow from operating activities/operating income
	Operating cash flow (Cashflow)	Net profit/net assets
	Profitability (Roe)	(Total assets/total assets of previous year) × 100
	Growth capacity (Growth)	Sum of the top ten shareholders’ shareholdings
	Equity concentration (Top10)	(Total enterprise assets + 1) Logarithm

.

3.3. Research Model

To avoid missing the effects of variables and time trends, this study utilizes a two-way fixed-effect model that accounts for both years and firms. The detailed model is outlined as follows:

To evaluate the effect of corporate ESG ratings on company value, we constructed model (1–3):

$${value}_{it}={\alpha }_0+{\alpha }_1{ESGscore}_{it}+{\alpha }_{3}contro{l}_{it}+{\gamma }_i+{\theta }_t+{\epsilon }_{it}$$

(1)

$${value}_{it}={\alpha }_0+{\alpha }_1{ESGscore}_{it}+{\alpha }_2{brand}_{it}+{\alpha }_3{ESGscore}_{it}\times {brand}_{it}+{\alpha }_{4}contro{l}_{it}+{\gamma }_i+{\theta }_t+{\epsilon }_{it}$$

(2)

$${value}_{it}={\alpha }_0+{\alpha }_1{ESGscore}_{it}+{\alpha }_2{soe}_{it}+{\alpha }_3{ESGscore}_{it}\times {soe}_{it}+{\alpha }_{4}contro{l}_{it}+{\gamma }_i+{\theta }_t+{\epsilon }_{it}$$

(3)

A positive coefficient for the explanatory variable indicates that the enterprise’s ESG performance contributes to an increase in its value. A moderated mediation model is constructed. When the coefficient of the explanatory variable is positive, it indicates that the moderating variable amplifies the effect of ESG on enhancing corporate value. If it is negative, it indicates that the moderating variable suppresses the effect of ESG on enhancing corporate value.

In this study, $i$ denotes the individual, $t$ represents the year, and the Huazheng ESG score is used as the dependent variable. To improve its accuracy, the model accounts for both individual and temporal effects.

4. Results

4.1. Descriptive Statistics

According to the descriptive statistics of the principal variables displayed in

Table 2. Descriptive statistics of major variables.

Variable	N	Mean	SD	Min	Max
value	472	0.600	0.248	0.124	1.181
brand	472	17.94	2.054	12.41	22.47
ESGscore	472	4.099	0.932	1.750	6
Size	472	22.09	1.324	18.95	25.91
lev	472	0.431	0.192	0.0700	0.993
Cashflow	472	0.0800	0.217	−0.907	0.688
Top10	472	58.05	15.07	22.47	91.69
Roe	472	0.0440	0.182	−1.145	0.437
Growth	472	0.154	0.401	−0.532	2.531

, it is apparent that the mean market-to-book ratio (M/B) for firms within the sports sector is 0.6. This suggests that the majority of publicly traded companies in the sports industry have relatively low market values compared to their book values. Consequently, identifying new factors that could enhance the worth of these companies in the market is a meaningful and important endeavor. Other control variables are also within a reasonable range.

4.2. Correlation Analysis

As indicated in

Table 3. Correlation analysis.

	Value	Brand	ESG	Size	lev	Cashflow	Top10	Roe
value	1
brand	0.420 ***	1
ESG	0.253 ***	0.311 ***	1
Size	0.636 ***	0.650 ***	0.312 ***	1
lev	0.159 ***	0.096 **	−0.130 ***	0.174 ***	1
Cashflow	0.00900	0.107 **	0.080 *	0.0680	−0.0710	1
Top10	0.187 ***	0.195 ***	0.0380	0.261 ***	−0.177 ***	0.00600	1
Roe	0.0280	0.089 *	0.216 ***	0.091 **	−0.232 ***	0.0490	0.098 **	1
Growth	−0.0120	−0.0130	0.116 **	−0.0540	−0.160 ***	−0.089 *	0.200 ***	0.207 ***

t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1.

regarding the correlation analysis, it can be seen that the magnitude of the correlation coefficient of each variable is generally below 0.7. This indicates that each variable is relatively independent of the other, which to a certain extent alleviates the problem of collinearity in the regression equation, and a subsequent regression analysis can be performed. Among them, there exists a notable positive correlation between the independent variables and the dependent variables in this paper, which is consistent with the hypothesis of this paper. However, a more rigorous result should be verified by adding control variables and using the double fixed-effect model in the following text.

4.3. Regression Test of ESG and Corporate Value

The benchmark regression outcomes in

Table 4. Regression test of ESG and corporate value.

	(1)	(2)
Variables	Value	Value
ESG_score	0.0464 ***	0.0191 *
	(4.12)	(1.96)
Size		0.1832 ***
		(11.69)
Lev		−0.2605 ***
		(−4.29)
Cashflow		0.0076
		(0.25)
Top10		0.0018 **
		(2.32)
Roe		−0.0945 **
		(−2.43)
Growth		0.0385 **
		(2.25)
Constant	0.4094 ***	−3.5218 ***
	(8.78)	(−10.91)
Observations	472	472
R-squared	0.678	0.778
Firm FE	YES	YES
Year FE	YES	YES

t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1.

show that corporate ESG performance exerts a considerable beneficial impact on the value of listed companies in the sports industry. Prior to the inclusion of control variables, the primary explanatory variable is significant at the 1% level. After incorporating the control variables, it remains positively significant at the 10% level. This result reinforces the hypothesis that corporate ESG performance enhances the value of sports industry firms. Hypothesis 1 is supported.

4.4. Test of the Mediating Effect of Intangible Assets

Next, we verify the intermediary role played by intangible assets. This study measures and verifies it through the brand value of listed companies, as demonstrated in

Table 5. Test of the mediating effect of intangible assets.

	(1)	(2)	(3)
Variables	Value	Brand	Value
ESG_score	0.0191 *	0.1770 **	−0.1525 **
	(1.96)	(2.16)	(−2.18)
Brand			−0.0455 ***
			(−2.92)
Brand_ESG_score			0.0095 **
			(2.50)
Size	0.1832 ***	1.2547 ***	0.1992 ***
	(11.69)	(9.49)	(11.55)
Lev	−0.2605 ***	−1.9145 ***	−0.2793 ***
	(−4.29)	(−3.74)	(−4.56)
Cashflow	0.0076	0.0950	0.0042
	(0.25)	(0.37)	(0.14)
Top10	0.0018 **	−0.0008	0.0017 **
	(2.32)	(−0.12)	(2.17)
Roe	−0.0945 **	−0.5114	−0.1050 ***
	(−2.43)	(−1.56)	(−2.71)
Growth	0.0385 **	−0.1087	0.0433 **
	(2.25)	(−0.75)	(2.52)
Constant	−3.5218 ***	−9.5998 ***	−3.0451 ***
	(−10.91)	(−3.53)	(−7.69)
Observations	472	472	472
R-squared	0.778	0.771	0.783
Firm FE	YES	YES	YES
Year FE	YES	YES	YES

t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1.

. The results indicate that companies with higher ESG scores tend to see an increase in brand value. A strong ESG performance not only enhances a company’s social image and reputation but also attracts more investors and consumers, thereby improving its market competitiveness. Additionally, the positive cross term in column (3)—the interaction between ESG score and brand value—further confirms that ESG performance significantly boosts brand value. This suggests that ESG scores not only directly increase the overall value of listed companies but also indirectly support their long-term growth by enhancing brand equity. These findings provide support for Hypotheses 2 and 3.

4.5. Robustness and Endogeneity Issues

To prevent the endogeneity issue arising from the reverse causation of “greater enterprise value leads to improved ESG performance”, this paper further uses the lagged period of the enterprise ESG score instrumental variable to address the endogeneity issue. On the one hand, the lagged period of the enterprise ESG score is strongly correlated with the current period’s ESG score; on the other hand, the lagged data do not affect the previous period’s data, satisfying the homogeneity assumption. The p-value of the Anderson canon. corr. LM statistic is 0.0000, rejecting the null hypothesis of unidentifiability; the value of the Cragg–Donald Wald F statistic is 107.204, exceeding the critical value of 16.38 at the 10% significance level provided by Stock and Yogo. Therefore, there is no weak instrument problem in selecting this instrumental variable. As illustrated in

Table 6. Endogenous problem treatment: instrumental variable method.

	(1)	(2)
Variables	ESG_Score	Value
IV	0.4656 ***
	(10.50)
ESG score		0.0761 ***
		(3.19)
Size	0.1147 **	0.0315 *
	(2.10)	(1.95)
Lev	−0.3041	0.0663
	(−1.06)	(0.85)
Cashflow	0.1186	−0.0325
	(0.84)	(−0.91)
Top10	−0.0002	0.0024 **
	(−0.04)	(2.50)
Roe	0.1961	−0.0498
	(1.06)	(−1.01)
Growth	0.2070 **	0.0109
	(2.00)	(0.40)
Constant	−0.1395
	(−0.12)
Observations	416	415
R-squared	0.253	0.466
Number of id	42	41
Firm FE	YES	YES
Year FE	YES	YES

t-statistics in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1.

, the estimated coefficient of the first-stage instrumental variable exhibits a statistically significant positive relationship at the 1% significance level, thereby supporting the assumption of statistical correlation. The regression results of the second stage prove that the coefficient of the impact of corporate ESG performance on corporate value is notably positive at the 1% significance level, confirming that Hypothesis 1 is still applicable.

4.6. Moderating Effect Test

We next examine whether the nature of an enterprise influences the effect of ESG performance on the worth of publicly traded companies within the sports sector. The results, as shown in the

Table 7. Test of the moderating effect of policy support.

	(1)	(2)
Variables	ESG Score	ESG Score
Board Multi	−0.0308 ***	−0.0029
	(−8.13)	(−0.81)
Size		1.2128 ***
		(35.11)
Roe		3.6827 ***
		(13.04)
Lev		−4.8948 ***
		(−22.50)
Growth		1.9266 ***
		(11.46)
Top10		0.0217 ***
		(9.12)
Cashflow		0.9762 *
		(1.75)
Mb		1.1150 ***
		(6.15)
Constant	73.6062 ***	63.2439 ***
	(975.24)	(233.85)
Observations	18,932	18,932
R-squared	0.069	0.207
Industry FE	YES	YES
Year FE	YES	YES

t-statistics in parentheses *** p < 0.01, * p < 0.1.

, reveal a notable positive relationship between ESG scores and the state-owned nature of enterprises at the 5% level. This observation suggests that entities owned by state enterprises enhance the contribution of ESG performance on the corporate value of publicly traded sports companies. State-owned enterprises often benefit from greater policy support and resource advantages. These enable them to more effectively implement ESG strategies and improve their performance across environmental, social, and governance dimensions. Such advantages not only enhance ESG performance but also amplify its contribution to corporate value.

5. Conclusions

5.1. Discussion and Results

This study uses 41 Chinese listed sports companies from 2009 to 2023 as a sample to explore how corporate ESG performance affects corporate value through the mediating role of intangible assets and the impact of the policy environment. The results show that a good ESG performance significantly improves corporate value by enhancing brand assets and optimizing resource allocation, highlighting the strategic importance of ESG in corporate sustainable development. Specifically, ESG performance enhances market competitiveness by enhancing brand value and accumulating intangible assets. Companies with sound ESG practices will attract more investors and consumers, enhance their social image, and drive their market value growth. This is consistent with the findings in the existing literature that good ESG practices can create a higher market value for companies [9,26]. This study’s practice survey of listed sports companies provides new ideas for the sustainable development of the sports industry.

In addition, we also found that the policy environment also has a significant moderating effect on this relationship. State-owned enterprises benefit from more policy support and resource advantages and are able to implement ESG strategies more effectively and achieve excellent results in the fields of environmental protection, social responsibility, and governance practices. These advantages amplify the contribution of ESG performance to corporate value. In contrast, non-state-owned enterprises face greater challenges in ESG implementation due to resource constraints and limited policy support.

5.2. Research Significance

This study provides an important perspective for improving corporate ESG performance and optimizing governance structures, and it emphasizes three key strategies: Enterprises can enhance their market competitiveness and long-term value by increasing their investment in intangible assets, strengthening brand building and innovation. It is equally important to optimize the policy environment, focusing on increasing policy support for corporate green development through measures such as tax incentives and technological innovation. In addition, establishing an effective ESG management system can significantly improve the sustainability of enterprises in the capital market by establishing a sound governance structure, strengthening information disclosure, and optimizing resource allocation. These research results provide a new perspective on the relationship between ESG performance and the value of listed sports companies, emphasizing the important role of intangible assets and the policy environment. This study provides practical guidance for corporate managers to formulate sustainable development strategies, and itprovides a theoretical basis for policymakers to promote corporate green transformation.

5.3. Limitations and Future Research

Although this research offers important perspectives on the connection between ESG performance and corporate value, some limitations indicate areas for subsequent investigations. Initially, this research is exclusively concentrated on Chinese-listed sports companies, which may restrict the applicability of the findings to different industries or geographical areas with different governance structures and policy environments. Subsequent investigations may expand their focus to encompass a variety of industries and international contexts to provide a broader perspective. Second, this study mainly examines the intermediary function of intangible assets and the influence of moderation in this context of the policy environment; however, other factors, such as technological innovation, stakeholder engagement, or cultural influences, may also play an important role. Examining these additional variables could deepen our understanding of ESG dynamics.