Exploring the impact of sustainability on corporate financial performance using discriminant analysis

dc.authorscopusid 57216222181
dc.authorscopusid 57130671100
dc.authorscopusid 55376367900
dc.contributor.author Keskin, Ayşe İrem
dc.contributor.author Dincer,B.
dc.contributor.author Dincer,C.
dc.contributor.other Business Administration
dc.date.accessioned 2024-10-15T19:42:09Z
dc.date.available 2024-10-15T19:42:09Z
dc.date.issued 2020
dc.department Kadir Has University en_US
dc.department-temp Keskin A.I., Department of Banking and Insurance, Faculty of Management, Kadir Has University, Cibali Mah. Kadir Has Cad. Fatih, Istanbul, 34083, Turkey; Dincer B., Department of Business Administration, Faculty of Economic and Administrative Sciences, Galatasaray University, çiragan Cad. No:36, Ortaköy/Istanbul, 34349, Turkey; Dincer C., Department of Business Administration, Faculty of Economic and Administrative Sciences, Galatasaray University, çiragan Cad. No:36, Ortaköy/Istanbul, 34349, Turkey en_US
dc.description.abstract The impact of sustainability on corporate financial performance has been an important subject of both academic and professional debate since the 1990s. However, there is a lack of consensus in the literature, and studies from developing countries remain scarce. Accordingly, this study uses discriminant analysis to shed light on the variables that discriminate between sustainable and non-sustainable companies using the companies included in Borsa Istanbul (BIST100) (Istanbul Stock Exchange) and the Borsa Istanbul Sustainability Index for a three-year period. Financial and market variables are used in the analysis. Financial variables include the return on equity (ROE), return on assets (ROA), leverage ratios, and company size. The analysis also incorporates market variables such as alpha, beta, volatility, earnings per share, and the price to book ratio. The results show that the relationship between sustainability and performance is significantly influenced by the company size, leverage, volatility, and price to book ratio. The large companies are considered to be more sustainable as their commitment is well recognized. In this way, they attract more investors. Therefore, their stock prices are less volatile and achieve a better price to book ratio. They obtain easy access to external financing compared to companies considered to be non-sustainable. Moreover, they are less volatile in the market and better valued by investors. © 2020 by the authors. en_US
dc.identifier.citationcount 23
dc.identifier.doi 10.3390/su12062346
dc.identifier.issn 2071-1050
dc.identifier.issue 6 en_US
dc.identifier.scopus 2-s2.0-85082865995
dc.identifier.scopusquality Q2
dc.identifier.uri https://doi.org/10.3390/su12062346
dc.identifier.uri https://hdl.handle.net/20.500.12469/6523
dc.identifier.volume 12 en_US
dc.identifier.wosquality Q2
dc.language.iso en en_US
dc.publisher MDPI en_US
dc.relation.ispartof Sustainability (Switzerland) en_US
dc.relation.publicationcategory Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı en_US
dc.rights info:eu-repo/semantics/openAccess en_US
dc.scopus.citedbyCount 25
dc.subject Corporate social responsibility en_US
dc.subject Corporate sustainability en_US
dc.subject Discriminant analysis en_US
dc.subject Financial performance en_US
dc.subject Sustainability impact en_US
dc.title Exploring the impact of sustainability on corporate financial performance using discriminant analysis en_US
dc.type Article en_US
dspace.entity.type Publication
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