Unveiling how efficiently sustainability transforms into intangible assets of financial institutions

Indrė Lapinskaitė, Viktorija Stasytytė and Viktorija Skvarciany

Research in International Business and Finance, 2025, vol. 76, issue C

Abstract: This research delves into the relationship between environmental, social, and governance (ESG) factors and the financial value of intangible assets within financial institutions, building upon prior research that focuses on sustainable development aspects and their impact on P/E ratios. While the earlier study revealed that there is no effective transformation of E, S, and G scores into P/E ratio, this research shifts the focus to the intangible value of financial institutions. The rationale is rooted in recognising that sustainable practices contribute not only to tangible assets and profitability but also to the increasingly crucial intangible value for long-term stakeholder appreciation. The study aims to assess the efficiency of translating sustainable development outcomes, measured through ESG scores, into the valuation of intangible assets using Data Envelopment Analysis (DEA). The paper emphasises the strategic importance of intangibles and the need to understand how ESG practices influence their financial value. After applying three different evaluation models, the results found effective transformation of the selected variables in 7 of 53 financial institutions.

Keywords: ESG; Intangible assets; Sustainable development; Financial institutions; Efficiency; Data envelopment analysis (DEA) (search for similar items in EconPapers)
JEL-codes: G21 G22 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:76:y:2025:i:c:s0275531925000911

DOI: 10.1016/j.ribaf.2025.102835

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