Exploring the Impact of Sustainability on Corporate Financial Performance Using Discriminant Analysis

dc.contributor.author Keskin, Ayşe İrem
dc.contributor.author Keskin, Ayşe İrem
dc.contributor.author Dinçer, Banu
dc.contributor.author Dinçer, Caner
dc.contributor.other Business Administration
dc.date.accessioned 2020-04-24T11:24:43Z
dc.date.available 2020-04-24T11:24:43Z
dc.date.issued 2020
dc.department Fakülteler, İşletme Fakültesi, Bankacılık ve Sigortacılık Bölümü 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. en_US
dc.identifier.citationcount 18
dc.identifier.issn 2071-1050 en_US
dc.identifier.issn 2071-1050
dc.identifier.issue 6 en_US
dc.identifier.scopusquality Q1
dc.identifier.uri https://hdl.handle.net/20.500.12469/2830
dc.identifier.uri https://doi.org/10.3390/su12062346
dc.identifier.volume 12 en_US
dc.identifier.wos WOS:000523751400193 en_US
dc.institutionauthor Keskin, Ayşe İrem en_US
dc.language.iso en en_US
dc.publisher MDPI en_US
dc.relation.journal Sustainability en_US
dc.relation.publicationcategory Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı en_US
dc.rights info:eu-repo/semantics/openAccess en_US
dc.subject Social-Responsibility en_US
dc.subject Environmental Sustainability en_US
dc.subject Competitive Advantage en_US
dc.subject Firm Performance en_US
dc.subject Green en_US
dc.subject Disclosure en_US
dc.subject Leadership en_US
dc.subject Companies en_US
dc.subject Nexus en_US
dc.subject Cost en_US
dc.title Exploring the Impact of Sustainability on Corporate Financial Performance Using Discriminant Analysis en_US
dc.type Article en_US
dc.wos.citedbyCount 19
dspace.entity.type Publication
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