Abstract
The behavior of firms is changing as new kinds of businesses evolve. In particular, companies are now seeking to optimize their value, especially their intangible value—referred to as brand equity value—which has many behavioral drivers. The analysis of brand equity determinants in the financial sector (e.g., ethical investments, sustainability and firm behavior) has received little attention. The methodology used in this study included the collection of information from publicly listed companies, followed by the execution of a statistical analysis to study the correlations between brand equity values and their determinants. We aimed to close this gap by raising the awareness of the positive impacts of sustainable investments in the financial sector and the need for a managerial implementation model to build a sustainability-oriented brand value. The objective of this research was to examine the relationships between elements such as sustainability scores or diversity measures and firms’ brand value. Considering sectoral and regional effects, we observed a positive relationship between environmental and social governance scores and brand equity value.
Highlights
In recent years we have seen a growing interest for responsible investment, an approach that considers environmental, social and governance (ESG) factors in portfolio selection and management
The methodology used in this study included the collection of information from publicly listed companies, followed by the execution of a statistical analysis to study the correlations between brand equity values and their determinants
Our results suggest that environmental, financial and governance factors are drivers for boosting brand value
Summary
In recent years we have seen a growing interest for responsible investment, an approach that considers environmental, social and governance (ESG) factors in portfolio selection and management. Global sustainable investment has increased a 67% in the last four years from $18,276 billion in 2014 to $30,683 billion in 2018 in the five major markets [2]. This popularity of sustainable investment may be viewed as investors becoming aware of environmental sustainability, the treatment of companies to their employees and society as a whole, as well as in business policies such as the diversity of the board of directors and ethics business. ESG factors may improve a business’ image for its stakeholders and engage its clients, boosting brand value
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