This paper aims to analyze the role of intellectual capital in the underexplored relationship between sustainable performance and credit access among private firms in Italy, where over 90% of businesses are small and medium enterprises. While D’Apolito et al. (2024) have investigated sustainability-linked bank financing among Italian listed small and medium-sized enterprises, this study takes a different approach by focusing on private firms and examining the influence of environmental, social and governance criteria on their credit access. The research seeks to deepen the understanding of how sustainable practices impact financial outcomes and access to funding for private enterprises.
To investigate the relationship between sustainable performance and credit access as well as the moderating role of intellectual capital, this study employs an ordinary least squares regression model. It utilizes an innovative measure of sustainable performance for private firms – the legality rating issued by the Italian Competition Authority in 2022 – drawing on prior research to establish a robust analytical framework.
The findings highlight the importance of incorporating environmental, social and governance criteria into the credit evaluation process for private firms. They underscore the critical role of intellectual capital – comprising human capital, structural capital and relational capital – as a moderating factor in the relationship between sustainable performance and credit access.
To the best of our knowledge, this study is the first to examine the moderating role of intellectual capital in the relationship between sustainable performance and credit access among Italian private firms. While substantial research exists on environmental, social and governance performance in large listed firms, there remains a notable gap concerning the sustainability criteria of private and unlisted entities. This study addresses this gap by providing insights into the unique dynamics of sustainable performance and financial access in the context of private enterprises.
