Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries
This study investigates whether the performance of the companies is affected when they are included in the Sustainability Index. The study deals with companies operating in Brazil and Turkiye, in this respect, the panel data analysis technique is applied. ROA...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2023-01-01
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| Series: | Journal of Economy Culture and Society |
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| Online Access: | https://dergipark.org.tr/en/download/article-file/1730917 |
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| author | Füsun Küçükbay Begüm Güler |
| author_facet | Füsun Küçükbay Begüm Güler |
| author_sort | Füsun Küçükbay |
| collection | DOAJ |
| description | This study investigates whether the performance of the companies is affected when they are included in the Sustainability Index. The study deals with companies operating in Brazil and Turkiye, in this respect, the panel data analysis technique is applied. ROA (Return On Assets) is used for the dependent variable, while independent variables are debt/equity ratio, company size, operational ratio and the Sustainability Index. The results of the study reveal that taking part in the Sustainability Index has a statistically significant positive effect on profitability for both Brazil and Turkiye. When the other results are analyzed, it is seen that there is a negative relationship between the debt / equity ratio and ROA for the case of Turkiye |
| format | Article |
| id | doaj-art-28aa73f3453a43e09cd9b3f90383b763 |
| institution | Kabale University |
| issn | 2645-8772 |
| language | English |
| publishDate | 2023-01-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | Journal of Economy Culture and Society |
| spelling | doaj-art-28aa73f3453a43e09cd9b3f90383b7632025-02-04T10:17:03ZengIstanbul University PressJournal of Economy Culture and Society2645-87722023-01-016630731910.26650/JECS2021-9271564Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing CountriesFüsun Küçükbay0https://orcid.org/0000-0001-6593-5884Begüm Gülerhttps://orcid.org/0000-0003-1502-8236Manisa Celal Bayar ÜniversitesiThis study investigates whether the performance of the companies is affected when they are included in the Sustainability Index. The study deals with companies operating in Brazil and Turkiye, in this respect, the panel data analysis technique is applied. ROA (Return On Assets) is used for the dependent variable, while independent variables are debt/equity ratio, company size, operational ratio and the Sustainability Index. The results of the study reveal that taking part in the Sustainability Index has a statistically significant positive effect on profitability for both Brazil and Turkiye. When the other results are analyzed, it is seen that there is a negative relationship between the debt / equity ratio and ROA for the case of Turkiyehttps://dergipark.org.tr/en/download/article-file/1730917sustainability indexfinancial performancepanel data analysis |
| spellingShingle | Füsun Küçükbay Begüm Güler Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries Journal of Economy Culture and Society sustainability index financial performance panel data analysis |
| title | Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries |
| title_full | Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries |
| title_fullStr | Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries |
| title_full_unstemmed | Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries |
| title_short | Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries |
| title_sort | does inclusion in the sustainability index contribute to the financial performance of the companies evidence from developing countries |
| topic | sustainability index financial performance panel data analysis |
| url | https://dergipark.org.tr/en/download/article-file/1730917 |
| work_keys_str_mv | AT fusunkucukbay doesinclusioninthesustainabilityindexcontributetothefinancialperformanceofthecompaniesevidencefromdevelopingcountries AT begumguler doesinclusioninthesustainabilityindexcontributetothefinancialperformanceofthecompaniesevidencefromdevelopingcountries |