Governance Stratification and Dual Pathways to ESG Value Creation in China's Energy Storage Sector

Abstract

Against the backdrop of China's "dual carbon" goals and energy transition, the energy storage industry faces the dual challenge of achieving green development while enhancing firm value. This study aims to examine the mechanisms through which Environmental, Social, and Governance (ESG) performance affects corporate value in this sector, with a particular focus on the roles of green innovation, internal control, and ownership structure. Using panel data on Chinese listed energy storage firms from 2015 to 2023, we employ fixed-effects, mediation, moderation, instrumental-variable, and threshold-regression models to empirically test these relationships. Our findings reveal that: (1) ESG performance significantly enhances firm value, and this effect is particularly pronounced in the energy storage sector; (2) green innovation partially mediates the ESG–value relationship, indicating that ESG promotes value creation by incentivizing green innovation; (3) internal control quality positively moderates the ESG–value effect, with stronger internal controls amplifying the positive impact; and (4) ownership structure creates significant heterogeneity in the value transformation pathways between state-owned and non-state-owned enterprises. Threshold analysis further shows that the ESG–value relationship is nonlinear and varies under different institutional contexts. This study identifies a multidimensional mechanism through which ESG drives value creation in energy storage firms. The findings offer empirical evidence and practical guidance for energy storage companies to optimize ESG strategies, improve corporate governance, and for regulators to design differentiated policies.