Search Results (85)

Life-cycle cost assessment has gained increasing relevance across sectors related to urban and building development. In real estate and public procurement decision-making, it offers a comprehensive view of property costs beyond the initial investment, which aligns with European Sustainable Development policies and new taxonomies in sustainable investment. Life-cycle cost assessment supports sustainable design decisions by integrating multiple perspectives and methodologies, including Whole Life Costing and Net Present Value calculations. This approach enables a comprehensive evaluation of long-term costs and benefits, assessing their impact on economic viability and profitability throughout the investment life cycle. However, several challenges persist in standardizing methodologies, developing comprehensive data inventories, and ensuring consistency in result interpretation. The absence of universally accepted frameworks and guidelines introduces additional limitations for practitioners, including estimation inaccuracies, biased assessments, unreliable probability judgments, and the neglect of indirect consequences in decision-making. This review particularly emphasizes the need for interdisciplinary research to advance the integration of costs and benefits of externalities and intangibles associated with social and environmental criteria. Full article

This study investigated the intangible value transferred from urban megaprojects to surrounding residential property markets, focusing on Brisbane’s transformative urban regeneration projects currently in the development pipeline. The research objectives were twofold: first, to empirically investigate the dynamics of property markets influenced by urban megaprojects and second, to assess the impact of a specific case study on these markets through a longitudinal analysis of residential sales data. Drawing from environmental economics, the concept of willingness to pay (WTP) is used to quantify externalities associated with urban megaprojects. The research constructs a comprehensive dataset integrating geospatial and property-specific data. Through revealed preference methods, the intangible value transferred from mixed-use developments is identified and quantified via residential transaction prices. Utilising hedonic price modelling, this study systematically analysed residential transaction data to estimate implicit prices associated with spatial proximity to megaprojects. A comprehensive dataset integrating property-specific attributes, geospatial proximity measures, and temporal dynamics of project development phases underpins this analysis. This research and its findings advance the existing literature in several important dimensions. That is, this research represents the first microeconomic assessment of the property market’s impacts resulting from mixed-use megaprojects in Brisbane, offering novel empirical insights for both academic and practical applications, how urban megaprojects shape residential property values, and informing stakeholders involved in urban planning, policymaking, and real estate investment decisions. Practitioners and policymakers can leverage these insights to inform policy frameworks and strategic decisions. At the governmental level, the results offer applicable insights for urban revitalisation strategies, particularly relevant to central business districts undergoing similar developments. Private sector stakeholders can utilise these outcomes to anticipate market adjustments, managing supply and demand fluctuations more effectively. Full article

The growing importance of socially responsible investments is causing a rapid increase in the number of various ESG indices. This raises the question of whether the index design matters to stock market investors. The purpose of the article is therefore to analyze the impact of ESG index design on investor decisions motivated by announcements of index reconstitutions. It was assumed that information about company additions to, or deletions from, an index—signaling an improvement in or deterioration of its CSR standards—may be differently interpreted by investors depending on the context provided by the index design. This study used data on the reconstitutions of two ESG indices. One of them, FTSE4Good US, is based on negative screening. Due to its design, membership in it is strongly associated with legitimacy. The other index, DJSI North America, is a best-in-class index which confers a reputation effect. We have applied the event window methodology, which identifies the economic effects of an event by estimating its impact on share prices as reflected in the rate of return. Analysis encompassed 691 events concerning American listed companies in the years 2009–2019, of which 441 were additions and 250 were deletions. It was found that significant investor reactions were triggered only by reconstitutions of the index generating a reputation effect (DJSI). These results indicate that index design does matter. The reactions of investors were positive only when they associated a company’s social commitment with the creation of intangible resources contributing to its competitive advantage. Our results suggest that inclusion in a best-in-class index is more beneficial for a company than in an index based on negative screening. Full article

Introduction: Vaccinations are one of the most impactful public health interventions, saving millions of lives annually and reducing the spread of infectious diseases. Numerous vaccines are expected to become available in the future. Decision-makers will have to thoroughly evaluate them. It is essential to fully comprehend the value of vaccinations to effectively and efficiently guide decisions. Methods: This work aims to highlight the multifaceted benefits of vaccination, extending beyond clinical outcomes to encompass profound economic and societal advantages. Results: Vaccinations should be considered an investment, not a cost. In comparison to other health expenditures, the vaccine costs can be considered moderate. Vaccinations can also reduce the fiscal burden by avoiding diseases, minimizing lost workdays and absenteeism, lowering disability claims, and increasing workforce productivity. The costs of non-vaccination represent a relevant issue. Vaccination also plays a key role in addressing the global challenge of antimicrobial resistance. Apart from quantifiable economic parameters, vaccines also have intangible benefits reducing pain and avoiding quality of life lost and deaths. Conclusions: Comprehensive Health Technology Assessments are required to understand the overall value of vaccinations. Full article

This study introduces a methodology for assessing data value by identifying the key determinants that influence it. As data represents critical assets in modern business, companies must evaluate and use them strategically to maintain competitiveness. However, the intangible and complex nature of data makes objective valuation difficult. The proposed methodology categorizes data value determinants into two groups: essential value factors (completeness, accuracy, uniqueness, and consistency) and value-of-use factors (risk, timeliness, restrictive use, accessibility, and utility). This study analyzes the impact of each factor on the data value using quantitative methods. A regression analysis reveals the influence, interactions, and relative importance of these determinants. A real-world case study on the “Papers with Code” platform—widely used in machine learning research—demonstrates the methodology in practice. The results indicate that essential value factors, such as Percentage Correct and Task, have the strongest positive effect on data value, which underscores the importance of accuracy and relevance to specific applications. In contrast, factors such as Similar Datasets and Benchmarks reduce the data value, which highlights the need for uniqueness and differentiation in determining the value of a company’s data assets. This study provides practical guidelines for companies on the key factors to focus on when evaluating and managing data value. This study offers practical guidance on prioritizing value-related factors and enables more effective investment and utilization strategies. By addressing current limitations in data valuation and presenting a new approach, this study enhances data-driven decision-making and strengthens its associated competitive advantage. Full article

This study proposes that MNCs might withdraw from the CSR concept to gain tangible benefits, like improved corporate financial performance (CFP), and intangible benefits, such as reputational capital (RC). This represents a paradigm shift from the philanthropic end of the spectrum to the strategic win–win side, where all investments are expected to yield a return. Being tacit, quests for reputational returns are discussed in terms of corporate social performance (CSP) with its currency being RC (an intangible asset). However, this requires a deep understanding of the CSP concept and ‘good management’. This study argues that CSR will change trajectory based on three facets. First, we argue for the replacement of CSR by CSP, where ESG becomes ‘business as usual’. Second, regulatory categories (voluntary or legislated) will merge. Third, ethics endorsing ‘good management’ will alter executive mindsets, making CSP deeply embedded in corporate behavior. Organizational behavior towards CSP must, therefore, be sincere yet not embedded overwhelmingly. We extend previous discussions regarding the relationship between CSP and CFP, who present robust evidence that (1) absent CSR embedment has no/neutral CSP and CFP effect; (2) inadequate CSR yields negative CSP and CFP; and (3) productive CSR positively affects CSP and CFP. Consequently, this study argues that (4) strategic CSR (SCSR) maximizes positive CSP and that (5) excessive CSR is detrimental, yielding negative effects on both CSP and CFP. This study, therefore, conjectures the existence of a ‘sweet spot’, where SCSR optimizes CSP and CFP outcomes. The contributions address ESG engagement as a ‘sweet spot’ concept and provide a model enabling SCSR discussion, CSP evaluations, and an implementation framework for its achievement. The framework gives executives a toolbox to influence their stakeholders toward improved CFP. Therefore, our perspective supports CSP embedment, enabling firms to address business growth and sustainability requirements. Full article

The economic literature documents that the investment rate in intangible assets, including intellectual property (IP), has far outpaced that of tangible assets for several decades. In this context, our research delves into the impact of self-created intangible assets on the auditor’s risk assessment. We present compelling evidence that, on average, research and development (R&D) knowledge capital is associated with higher audit fees. Using patent-based metrics as the proxies for innovation outcomes, we reveal that the number of patents (quantity), patent citations (quality-adjusted quantity), and patent technology classes (scope) all positively correlate with audit fees. Additional analyses show that innovation efficiency is negatively associated with audit fees. Furthermore, firms with a higher intensity of knowledge capital are more likely to receive going concern opinions than those with significant innovation outcomes. These findings provide valuable insights into the complex relationship between intangible assets and audit risk assessment. Full article

This paper examines how R&D human capital can mitigate the negative effects of financing constraints on firm innovation, using survey data from 4000 South Korean manufacturing firms. The results confirm that financing constraints are generally associated with lower levels of product innovation. However, firms with stronger R&D human capital—measured by higher education levels and a larger proportion of R&D employees—are better able to overcome these financial barriers. Moreover, the positive moderating effect of R&D human capital is significantly enhanced in firms with an entrepreneurial culture, which supports risk-taking and innovation. These findings underscore the importance of investing in intangible assets, such as human capital and fostering a culture of entrepreneurship to sustain innovation during periods of financial distress. Policymakers should consider expanding financial support for R&D activities, particularly for small and medium-sized enterprises (SMEs) that face higher costs of capital. This study contributes to the literature by using direct measures of financial constraints and highlighting the role of human capital in innovation, especially in financially constrained environments. Full article

Background: Prior to measles vaccine introduction in 1963, measles virus caused hundreds of thousands of annual reported cases, which led to substantial US morbidity, mortality, and costs. Similarly, congenital rubella syndrome (CRS) led to highly visible and tragic lifelong disability for thousands of Americans, before rubella vaccine introduction in 1969. The US certified national virus transmission elimination of indigenous measles in 2000 and rubella in 2004. Methods: Applying an existing integrated transmission and economic model, this analysis characterizes the net benefits of US investments in measles (1963–2030) and rubella (1969–2030) immunization assuming continued high routine immunization coverage. Due to importation risks, the US maintains two doses of both vaccines in its routine immunization schedule. Results: This analysis estimates total US costs of 8.1 billion (economics reported in 2023 US dollars) for measles immunization for 1963–2023 and 14.1 billion for rubella immunization for 1969–2023. The analysis estimates an additional approximately 1.2 billion for measles immunization and 1.5 billion for rubella immunization expected for 2024–2030. Historical and future US investments prevented an estimated approximately 237 million measles infections, 228,000 measles deaths, 193 million rubella infections, and 166,000 CRS cases. These investments imply net benefits (from avoided treatment costs minus immunization costs) of approximately 310 billion for measles and 430 billion for rubella and CRS, even without incorporating avoided productivity losses and intangible costs. Conclusions: US investments in measles and rubella immunization continue to provide enormous savings of human and financial costs and to prevent substantial mortality and morbidity. Full article

This study delves into the complex interplay between land use dynamics, hydrological services, and intangible benefits within the context of Ifrane National Park (INP) in Morocco. Due to its extensive mountain forests and numerous wetlands, INP is a crucial contributor to the nation’s water supply and a vital source of hydrological ecosystem services (HES). However, climate change and evolving land use patterns have led to diminishing water resources and the desiccation of certain wetlands. This research used the Integrated Valuation of Ecosystem Services and Tradeoffs software (InVEST 3.10.2) for HES quantification and environmental economics approach for monetization to comprehend how HES values respond to challenges posed by urbanization, intensive agriculture, and other land use alterations. This work underscores INP’s role as a significant “water tower”, emphasizing the evolution of its services amidst challenges. Our findings reveal an annual decrease in HES economic value by USD 4000. This economic assessment serves as a compelling tool to enlighten decision-makers and park users about the imperative need to preserve natural ecosystems and use water resources judiciously. It advocates for investments in conservation and restoration within protected areas to sustain these vital services. Full article

This study investigates the impact of Research and Development (R&D) investment on the performance of Portuguese companies, specifically addressing the gap in understanding how R&D influences a company’s value and performance. We employ a dynamic panel data model estimated using the Generalized Method of Moments (GMM) to account for potential endogeneity issues. This approach allows us to analyze the influence of R&D investment on the Return on Operating Assets (ROA) for Portuguese companies with significant R&D investments between 2012 and 2019. The analysis reveals that while R&D investment itself may not have a statistically significant short-term impact on ROA, lagged financial performance, leverage, asset turnover ratio, and accounts payable turnover all demonstrate a statistically significant relationship with the dependent variable. Full article

This study integrates the (extended) resource-based view (ERBV/RBV) and non-market strategy (i.e., corporate political activity) to investigate the role of internal and external resources as drivers of innovation in small and medium-sized enterprises in emerging markets (ESMEs). Using primary data from 192 Vietnam SMEs collected between 2014 and 2016, we adopted a partial least square estimation to examine our hypotheses, supplemented by ordinary least square and unobserved heterogeneity tests for robustness. Our PLS-SEM results reveal that firms with intangible resources, from human capital investment to political connections, are more likely to innovate. While the positive effect of human capital investment on innovation is not moderated by government information access, the impact of political connections as an extended resource is significantly enhanced by access to government information. On the other hand, international export experience is not related to innovation by itself, but it is positively moderated by government information access, suggesting that engaging in international markets alone is insufficient. This study contributes to the emerging market literature by examining the effects of intangible resources and political connections on ESMEs’ innovation and highlighting the role of government information as a non-market strategy access in enhancing these relationships. Full article

Businesses investing in production digitalization equipment are supposed to benefit from increased productivity, enhanced efficiency, and revenue growth. Despite the increasing use of digital technologies in business, many companies still struggle to measure and maximize their returns from production digitalization investments. This research assesses the impact of production digitalization investments on companies’ financial performance (operating revenue) for European businesses in the period of 2013 to 2021. To achieve this target, we performed a Fixed Effects Panel Regression analysis, using a sample size of 5706 records from the Orbis database for 30 countries, covering 634 business units. The production digitalization investment in this research is expressed by a calculated variable value, measured as the annual change in a company’s Plant and Machinery value, adjusted with corresponding an annual depreciation value for the assets. The regression output was analyzed by considering the characteristics of the company size and business location. The results suggest that companies in Eastern Europe benefit more from production digitalization than those in Western Europe. The analysis highlights the tendency for the company costs of the employee and intangible fixed asset value to increase as production digitalization investments grow. Additionally, it shows that large companies tend to gain more from such investments than smaller ones. The analysis provides support and guidance for businesses’ production digitalization investment strategic decision-making processes. Full article

This study delves into the impact of intangible and tangible investments on future earnings volatility within the European financial market context. Drawing from International Accounting Standards (IAS) 16 and 38, we examine the intricate relationship between fixed assets, expenses, and the uncertainty surrounding forthcoming earnings. Our analysis reveals that intangible assets, often associated with heightened uncertainty and risk, contribute to increased earnings volatility compared to capital expenditures. Furthermore, we find that capitalizing intangible assets serves to alleviate uncertainty, resulting in lower earnings volatility compared to expensing them. Our exploration of industries’ effects further reinforce these findings, with the effect of intangible and tangible investments on earnings volatility being more pronounced in high-tech industries than in low-tech industries. Additionally, our robustness test, utilizing goodwill as a proxy for intangible assets and property, plant, and equipment as a proxy for tangible assets, yields consistent results, further bolstering our findings. Full article

Cities are facing challenges in adaptation to, and mitigation of climate change. Urban Green Spaces (UGS) have a pivotal role in this transformative process and are almost always coupled with digital tools. The deployment of digital solutions, encompassing Information and Communication Technology (ICT) and the Internet of Things (IoT), seeks to increase awareness of UGS benefits across a wider range of users. This study is part of a Horizon 2020 project that aims to measure the social impact of Visionary Solutions (VS), i.e., combined Nature Based Solutions (NBSs) and Digital Solutions (DSs), in UGSs located in seven European cities. The project proposes a novel application of the Social Return on Investment (SROI) methodology to forecast the impact of VS implementation in the case of an Italian demonstration. The three main objectives are: (i) establishing a causal chain for transformation through the Theory of Change (ToC) tool; (ii) quantifying the expected change by developing two monetary alternatives; and (iii) comparing these alternatives to assess which is more influential in stakeholders’ decision-making. The authors reviewed a range of financial proxies of social outcomes from other SROI case studies. The result of the Italian demonstration is that, for each euro invested in project solutions, two euros of social return are generated. The analysis reveals these monetized intangible outcomes. Full article