ESG performance and corporate competitiveness: the roles of green innovation, industry competition and media attention

Purpose This study aims to investigate how environmental, social and governance (ESG) performance affects corporate competitiveness, the mechanisms underlying these effects and how industry competition and media attention influence the relationship between ESG performance and competitiveness. Design/methodology/approach Using a sample of Chinese A-share listed companies from 2010 to 2022, the authors perform three distinct analyses: first, whether ESG performance enhances competitiveness; second, whether green innovation mediates the relationship between ESG performance and competitiveness; and third, how industry competition and media attention moderate the connection between ESG performance and competitiveness. Findings The results demonstrate that enhanced competitiveness correlates with improved ESG performance, and ESG performance boosts competitiveness through heightened green innovation. Moreover, media attention and industry competition amplify the positive effects of ESG performance on competitiveness. Research limitations/implications The study’s findings may not generalize to other developing countries, owing to imprecise measurement standards for green innovation and ESG performance and insufficient exploration of interactions between the two mechanisms. Originality/value This study examines how ESG performance influences nonfinancial outcomes such as corporate competitiveness, expanding research beyond financial effects. It elucidates the transmission mechanism of competitiveness enhancement, providing empirical support for sustainable development strategies. Additionally, it explores the moderating roles of media attention and industry competition in the ESG performance-competitiveness relationship, addressing current research gaps.