EcoFin Research Papers

This paper proposes an integrated framework of intangible capital that encompasses human well-being, ethical alignment, and institutional design, and evaluates its pricing implications. Using a comprehensive dataset of publicly listed firms from 40 countries, national equity indices, and major cryptocurrencies over the period 2000–2024, we construct measures of human capital (employee happiness), ethical capital (sin exposure), and institutional capital (macro credibility and crypto governance structures). Asset pricing tests are conducted using multi-factor models, panel regressions, and risk-adjusted performance metrics. The findings reveal that human and institutional capital are consistently associated with higher firm valuation and lower downside risk, while ethical penalties are reflected in return premia for sin-related assets. In crypto markets, institutional capital emerges as a key determinant of volatility reduction and return persistence. These results suggest that intangible capital represents a missing dimension in conventional valuation models, with relevance across both traditional and digital financial systems.

Intangible capital, human capital, institutional design, asset pricing, cryptocurrencies

G12, J24, O16

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