The Effect of ESG (Environmental, Social And Governance) Scores on Company Performance: Evidence from the Manufacturing Industry in Turkey

Halil İbrahim Akpınar; Mehmet Sabri Topak

Makale detayları

The Effect of ESG (Environmental, Social And Governance) Scores on Company Performance: Evidence from the Manufacturing Industry in Turkey

Yazarlar:

Halil İbrahim Akpınar | Mehmet Sabri Topak

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonometri (Diğer)

Dergi:

EKOIST Journal of Econometrics and Statistics Issue 41, pp.109-117

Belge Tipi:

Makale

Yayın Tarihi:

12/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001340596

pISSN:

2651-396X

Anahtar kelimeler:

Özet:

 This study aims to investigate the impact of Environmental, Social, and Governance ESG scores on company performance in manufacturing companies using panel data analysis. The sample comprises data from sixteen companies listed in BIST Industrial Index XUSIN over the period 2018-2022. Two models were established in which ROA and Tobins Q ratios, selected as indicators of company performance, were used as dependent variables. In this context, the study investigated the impact of ESG scores on performance measures both in terms of the performance derived from the companies intra-period activities and reflected in their financial statements, as well as the stock market performance of their shares. The independent variables included in the models are ESG scores, company size SIZE, leverage ratio LEV, current ratio CR, asset turnover ratio ATO, interest coverage ratio ICR, and revenue growth rate RGR. Based on the findings in the analysis, the final models were estimated by using Driscoll Kraay 1998 standard error method. The study finds that ESG scores have a statistically significant positive impact on both ROA significant at the 10 level and Tobins Q significant at the 5 level. This indicates that improvements in ESG performance can enhance both profitability ROA and stock market performance Tobins Q for companies.

 This study aims to investigate the impact of Environmental, Social, and Governance ESG scores on company performance in manufacturing companies using panel data analysis. The sample comprises data from sixteen companies listed in BIST Industrial Index XUSIN over the period 2018-2022. Two models were established in which ROA and Tobins Q ratios, selected as indicators of company performance, were used as dependent variables. In this context, the study investigated the impact of ESG scores on performance measures both in terms of the performance derived from the companies intra-period activities and reflected in their financial statements, as well as the stock market performance of their shares. The independent variables included in the models are ESG scores, company size SIZE, leverage ratio LEV, current ratio CR, asset turnover ratio ATO, interest coverage ratio ICR, and revenue growth rate RGR. Based on the findings in the analysis, the final models were estimated by using Driscoll Kraay 1998 standard error method. The study finds that ESG scores have a statistically significant positive impact on both ROA significant at the 10 level and Tobins Q significant at the 5 level. This indicates that improvements in ESG performance can enhance both profitability ROA and stock market performance Tobins Q for companies.

 This study aims to investigate the impact of Environmental, Social, and Governance ESG scores on company performance in manufacturing companies using panel data analysis. The sample comprises data from sixteen companies listed in BIST Industrial Index XUSIN over the period 2018-2022. Two models were established in which ROA and Tobins Q ratios, selected as indicators of company performance, were used as dependent variables. In this context, the study investigated the impact of ESG scores on performance measures both in terms of the performance derived from the companies intra-period activities and reflected in their financial statements, as well as the stock market performance of their shares. The independent variables included in the models are ESG scores, company size SIZE, leverage ratio LEV, current ratio CR, asset turnover ratio ATO, interest coverage ratio ICR, and revenue growth rate RGR. Based on the findings in the analysis, the final models were estimated by using Driscoll Kraay 1998 standard error method. The study finds that ESG scores have a statistically significant positive impact on both ROA significant at the 10 level and Tobins Q significant at the 5 level. This indicates that improvements in ESG performance can enhance both profitability ROA and stock market performance Tobins Q for companies.

 This study aims to investigate the impact of Environmental, Social, and Governance ESG scores on company performance in manufacturing companies using panel data analysis. The sample comprises data from sixteen companies listed in BIST Industrial Index XUSIN over the period 2018-2022. Two models were established in which ROA and Tobins Q ratios, selected as indicators of company performance, were used as dependent variables. In this context, the study investigated the impact of ESG scores on performance measures both in terms of the performance derived from the companies intra-period activities and reflected in their financial statements, as well as the stock market performance of their shares. The independent variables included in the models are ESG scores, company size SIZE, leverage ratio LEV, current ratio CR, asset turnover ratio ATO, interest coverage ratio ICR, and revenue growth rate RGR. Based on the findings in the analysis, the final models were estimated by using Driscoll Kraay 1998 standard error method. The study finds that ESG scores have a statistically significant positive impact on both ROA significant at the 10 level and Tobins Q significant at the 5 level. This indicates that improvements in ESG performance can enhance both profitability ROA and stock market performance Tobins Q for companies.

Makale detayları

The Effect of ESG (Environmental, Social And Governance) Scores on Company Performance: Evidence from the Manufacturing Industry in Turkey

Yazarlar:

Halil İbrahim Akpınar | Mehmet Sabri Topak

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonometri (Diğer)

Dergi:

EKOIST Journal of Econometrics and Statistics Issue 41, pp.109-117

Belge Tipi:

Makale

Yayın Tarihi:

12/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001340596

pISSN:

2651-396X

Sustainability

ESG

Performance

Panel Data Analysis

Borsa Istanbul

Sayı

Makale detayları

The Effect of ESG (Environmental, Social And Governance) Scores on Company Performance: Evidence from the Manufacturing Industry in Turkey

Yazarlar: Halil İbrahim Akpınar | Mehmet Sabri Topak

Yayıncı: Istanbul University

Ana Başlıklar: Ekonometri (Diğer)

Dergi: EKOIST Journal of Econometrics and Statistics Issue 41, pp.109-117

Belge Tipi: Makale

Yayın Tarihi: 12/2024

Belge Dili: İngilizce

Document ID (Org No.): 2001340596

pISSN: 2651-396X

Sustainability

ESG

Performance

Panel Data Analysis

Borsa Istanbul

Sayı

Yazarlar:

Halil İbrahim Akpınar | Mehmet Sabri Topak

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekonometri (Diğer)

Dergi:

EKOIST Journal of Econometrics and Statistics Issue 41, pp.109-117

Belge Tipi:

Makale

Yayın Tarihi:

12/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001340596

pISSN:

2651-396X