The impact of ESG performance on intangible assets and intellectual capital in the food and beverage industry

Abstract

Purpose

This study investigates how environmental, social, and governance (ESG) factors influence intangible asset and intellectual capital valuation within the food and beverage (F&B) industry. By examining and contrasting global and European contexts, the research highlights ESG’s critical role in shaping the economic dimensions of sustainability across different regulatory environments. The results provide essential insights for stakeholders aiming to enhance corporate value through responsible business practices.

Design/methodology/approach

We adopt a quantitative fixed-effects panel regression analysis for ESG performance and intangible asset and intellectual capital values. The correlations between these variables are explored both globally and in the European Union using 1,034 observations from 502 F&B companies.

Findings

Globally, higher ESG performance corresponds to lower intangible asset values, a trend not observed in the European Union. Further, high ESG performance is associated with a decrease in intellectual capital value, suggesting that internal organisational efforts in this area should be rewarded in terms of short-term value.

Originality/value

This study provides a new understanding of the relationship between ESG performance, intellectual capital, and the F&B industry operating environment, highlighting the complexity and challenges associated with integrating ESG practices.

Citation

Lanzalonga, F., Oppioli, M., Calandra, D. and Secinaro, S. (2024), "The impact of ESG performance on intangible assets and intellectual capital in the food and beverage industry", Management Decision, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MD-09-2023-1664