Culture Quant Framework for Measuring Intangible Assets

This document is a technical report that presents the Culture Quant Framework developed by Counterpoint Global to measure company culture and its impact on investment outcomes. It outlines the challenges of quantifying culture, which has traditionally been subjective and open to interpretation. The report emphasizes the shift from tangible to intangible investments, highlighting the importance of employee retention as a key performance indicator (KPI) for assessing corporate culture. The findings suggest that companies with high employee retention rates tend to experience better stock performance. The report details a systematic analysis conducted in collaboration with Harvard Business School, which examined the correlation between employee retention and stock returns across nearly 2,000 publicly traded companies. The analysis indicates that high employee retention can lead to significant competitive advantages and higher profitability. Additionally, the report discusses the integration of sustainability research into the investment process, emphasizing the role of adaptive cultures in fostering talent and driving long-term value creation.