The sports industry features low energy intensity and low emissions through which it has played an important role in realizing sustainable development. This study aims to examine the driving factors that help sports firms improve their innovation development and sustain growth. Using a panel of 95 sports firms listed on the New Third Board in China from 2015 to 2021 with 582 observations, this study evaluated the effect of innovation-driven policies on sports firms’ long-term growth, measured by market value, and the mediating effect of R&D investment on this relationship. The results showed that innovation subsidies and the deduction of R&D expenses can effectively encourage sports firms’ engagement in innovation development and finally help improve the firms’ market value. Furthermore, we found that the effect of R&D subsidies on sports firms’ market values increases with firm size. This study provides new insights into the literature on the long-term growth of sports firms by showing that policy support for sports firms’ innovation activities enables them to invest more resources into research and development activities, which finally reinforce their potential of long-term growth. Furthermore, the findings provide practical suggestions for policymakers on enhancing the development of the sports industry and helping sports firms sustain growth.

The sports industry, an emerging industry with low pollution and low emissions, plays an important role in the sustainable development of human society. Using 489 observations from a panel of 128 sports firms listed on the New Third Board in China from 2015 to 2020, this study investigated the effects of three different innovation-driven policies on the total factor productivity of sports firms and the moderating role of governance structure on this relationship. The results showed that high-tech enterprise tax relief was an important policy tool to promote the total factor productivity of sports enterprises, but the direct effects of government subsidies and pre-tax deduction of R&D expenses were not significant. In addition, governance structure had a positive moderating effect on the relationship between innovation-driven policies and the total factor productivity of sports firms. The positive effect of the pre-tax deduction of R&D expenses policy was more significant for sports firms with larger and more independent boards of directors. This study provides new insight into innovation policy development for the sports industry by showing that corporate governance has a significant impact on the effectiveness of innovation-driven policies. Furthermore, the findings provide practical guidance for both managers and government–industry policymakers in the sports industry.

This study focuses on a unique business phenomenon, legacy divestitures, which refers to the sale or spinoff of a firm's original business. I argue that firms may be prevented from engaging in legacy divestiture by organizational inertia, which become increasingly stronger as the legacy business gets older. I also examine factors that help firms overcome the constraints of inertial forces on firms' legacy divestitures. Hypotheses are tested using a sample of 108 diversified American companies, 27 of which divested legacy businesses between 1980 and 2017. Firms are less likely to divest their legacy businesses as the legacy units get older. The negative relationship is weakened by two factors, performance–aspiration gaps and R&D intensity.