Intellectual capital as catalysts translating ESG performance into investment willingness: evidence from Chinese private enterprises

Purpose This article aims at investigating the impact of ESG performance on investment willingness as well as the mediating effect of intellectual capital on the above-mentioned relationship. Design/methodology/approach Regression analyses are used for testing the relation between environmental, social, and governance (ESG) performance and investment willingness using data collected from Chinese private listed companies between 2009 and 2022. Findings ESG performance mitigates weak investment growth, thereby promoting the investment willingness of private enterprises. Mechanism testing reveals that enhancing intellectual capital is the main channel. Heterogeneity analysis indicates that the regional institutional environment, industry environment, ESG disclosure quality and acceptance of ESG-responsible investment significantly enhance the relationship between ESG performance and private enterprises investment willingness. The expansionary analysis shows that ESG funds, as an important representative of ESG-responsible investment, can promote the investment growth of enterprises. Practical implications Results can inform private enterprises about the key role of intellectual capital in addressing the relationship between ESG performance and investment willingness. Originality/value This paper deepens the understanding of the mediating role of intellectual capital in the process by which ESG performance promotes private enterprises’ investment willingness in China’s context.