THE EFFECT OF ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE) SCORES ON FIRM PERFORMANCE: EVIDENCE FROM TURKISH BANKING INDUSTRY

Year 2022, Issue: 63, 75 - 82, 30.12.2022

Emin Hüseyin Çetenak , Ersan Ersoy , Özcan Işık

https://doi.org/10.18070/erciyesiibd.1212587

Cited By: 7

Abstract

ESG scores are a measure that reveals the performance of companies regarding their investments
and activities in the fields of environmental, social, and corporate governance. In recent years, this
concept, which emerged because of companies developing reporting models by considering the
demands from stakeholders, has begun to become more decisive on the financial decisions of all
stakeholders. The aim of this study is to investigate the effect of ESG scores on financial performance
of Turkish commercial banks in the period of 2010-2020. In the analyzes performed using the PCSE
and FGLS panel data estimators, it has been concluded that the total ESG, social (SPS) and corporate
governance (GPS) scores of the banks positively affect the accounting and market-based performance indicators (ROA and Tobin’s Q). On the other hand, it was seen that the environmental (EPS) score did not have a statistically significant effect on both performance indicators. In addition, the results show that the Covid-19 pandemic has led to a decrease in banks’ performance as measured by ROA and Tobin’s Q. Analysis outcomes indicate that giving more importance to non-financial reporting and ESG activities will contribute to enhancing firm performance.

Keywords

ESG, Sustainability, Bank Performance, Firm Performance, Corporate Social Responsibility

ESG (ÇEVRESEL, SOSYAL VE KURUMSAL YÖNETİM) SKORUNUN FİRMA PERFORMANSINA ETKİSİ: TÜRK BANKACILIK SEKTÖRÜ ÖRNEĞİ

Abstract

ESG skorları, firmaların çevresel, sosyal ve kurumsal yönetim alanlarındaki yatırım ve faaliyetleri ile ilgili
performansını ortaya koyan bir ölçüttür. Son yıllarda firmaların paydaşlardan gelen talepleri dikkate
alarak çeşitli raporlama modelleri geliştirmesi sonucunda ortaya çıkan bu kavram, tüm paydaşların
finansal kararları üzerinde daha fazla belirleyici olmaya başlamıştır. Bu çalışmanın amacı Türkiye’de faaliyet gösteren mevduat bankalarında ESG skorlarının finansal performans üzerindeki etkisini araştırmaktır. Çalışma 2010-2020 dönemini kapsamaktadır. PCSE ve FGLS panel veri tahmincileri kullanarak yapılan analizlerde, bankaların toplam ESG, sosyal (SPS) ve kurumsal yönetim (GPS)
skorlarının muhasebe ve piyasa temelli performans göstergelerini (ROA ve Tobin Q) pozitif yönde
etkilediği tespit edilmiştir. Diğer taraftan çevresel (EPS) skorunun her iki performans göstergesi üzerinde de istatistiksel olarak anlamlı bir etkiye sahip olmadığı görülmüştür. Ayrıca sonuçlar, Covid-19 pandemisinin bankaların ROA ve Tobin Q ile ölçülen performanslarında azalışa yol açtığını
göstermektedir. Analiz bulguları firma performansını artırmada finansal olmayan raporlamaya ve ESG
faaliyetlerine daha fazla önem verilmesi gerektiğini işaret etmektedir.

Keywords

ESG, Sürdürülebilirlik, Banka Performansı, Firma Performansı, Kurumsal Sosyal Sorumluluk

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