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An Analysis of How Sustainability Performance Influences Financial Performance: Evidence From Türkiye

Year: 2025

Type: article

Abstract: Today, negative developments such as the rapid depletion and pollution of scarce natural resources, deforestation, and global warming have significantly increased stakeholder awareness. Increased awareness has driven businesses to adopt ethical, environmentally responsible practices and prioritize sustainability. In this context, the aim of this study is to examine the relationship between corporate sustainability and financial performance within the scope of companies listed on the BIST 30 index, which is regarded as a significant indicator of sustainability in Türkiye. Furthermore, firm size is incorporated into the analysis as a control variable. As a result of the analysis, it was found that in the static model, companies included in the XUSRD sustainability index have a positive effect on asset and sales returns. On the other hand, when the inclusion in the XUSRD and XSD25 indexes is evaluated together with firm size, the presence of a negative effect on financial sustainability in the dynamic model limits this positive impact. Additionally, it was determined that firm size alone has a positive effect on financial sustainability.

Source: International Review of Management and Marketing

DOI: 10.32479/irmm.21022

Authors: Esra B. Bulgurcu Gürel, Gülbahar Atasever, Eymen Gürel

Institution: Muğla University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $300

OpenAlex ID: W4415129299

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