The Impact of Carbon Emissions on Firms’ Financial Performance: An Application in BIST Sustainability Index

Yıl 2024, Cilt: 38 Sayı: 1, 39 - 47, 26.01.2024

İbrahim Sakın , İlker Kefe

Öz

The purpose of this study is to examine the carbon emission data of the firms listed in the Borsa Istanbul Sustainability Index in Turkey and analyze the relationship between carbon emissions and the financial performance of these firms. In this research, annual data for 31 firms listed in the Borsa Istanbul Sustainability Index for the period 2017–2020 were used. The relationship between the financial performance indicators of the firms and their carbon emissions was analyzed using a random effects panel data model. The dependent variables identified were return on assets and return on equity as measures of financial performance, while carbon emissions were consid- ered as the independent variable, along with control variables such as firm size, leverage ratio, firm growth, and firm value. The research findings indicate that carbon emissions have a negative impact on both return on assets and return on equity.

Anahtar Kelimeler

BIST Sustainability Index, carbon emission, financial performance, panel data analysis, sustainability reporting

Karbon Emisyonlarının Firmaların Finansal Performansına Etkisi: BIST Sürdürülebilirlik Endeksinde Bir Uygulama

Öz

Bu çalışmanın amacı, Türkiye’de Borsa İstanbul Sürdürülebilirlik Endeksi’nde listelenen firmala- rın karbon emisyon verilerini incelemek ve bu firmaların finansal performansı ile karbon emis- yonları arasındaki ilişkiyi analiz etmektir. Bu araştırmada, 2017–2020 dönemi için Borsa İstanbul Sürdürülebilirlik Endeksi’nde yer alan 31 firmanın yıllık verileri kullanılmıştır. Firmaların finansal performans göstergeleri ile karbon emisyonları arasındaki ilişki rassal etkiler panel veri modeli kullanılarak analiz edilmiştir. Finansal performansın ölçütleri olarak varlık getirisi ve özkaynak geti- risi belirlenirken, bağımsız değişken olarak karbon emisyonları yanında firma büyüklüğü, kaldıraç oranı, firma büyümesi ve firma değeri gibi kontrol değişkenleri de ele alınmıştır. Araştırma bulgu- ları, karbon emisyonlarının hem varlık getirisi hem de özkaynak getirisi üzerinde olumsuz bir etkisi olduğunu göstermektedir.

Anahtar Kelimeler

BIST Sürdürülebilirlik Endeksi, karbon emisyonu, finansal performans, panel veri analizi, sürdürülebilirlik raporlaması

Kaynakça

• Apaydın, F. (2009). Kurumsal teori ve işletmelerin kurumsallaşması. CÜ İktisadi ve İdari Bilimler Dergisi, 10(1), 1–22.
• Ben Jebli, M., & Ben Youssef, S. (2015). The environmental Kuznets curve, economic growth, renewable and non-renewable energy, and trade in Tunisia. Renewable and Sustainable Energy Reviews, 47, 173–185. [CrossRef]
• Bragdon, J. H., & Marlin, J. (1972). Is pollution profitable. Risk Management, 19(4), 9–18.
• Broadstock, D. C., Collins, A., Hunt, L. C., & Vergos, K. (2018). Voluntary disclosure, greenhouse gas emissions and business performance: Assessing the first decade of reporting. British Accounting Review, 50(1), 48–59. [CrossRef]
• Carpenter, V. L., & Feroz, E. H. (2001). Institutional theory and accounting rule choice: An analysis of four US state governments’ decisions to adopt generally accepted accounting principles. Accounting, Organ- izations and Society, 26(7–8), 565–596. [CrossRef]
• Chen, Y., Wang, Z., & Zhong, Z. (2019). CO2 emissions, economic growth, renewable and non-renewable energy production and foreign trade in China. Renewable Energy, 131, 208–216. [CrossRef]
• Cucchiella, F., Gastaldi, M., & Miliacca, M. (2017). The management of greenhouse gas emissions and its effects on firm performance. Jour- nal of Cleaner Production, 167, 1387–1400. [CrossRef]
• Dillard, J. F., Rigsby, J. T., & Goodman, C. (2004). The making and remaking of organization context: Duality and the institutionalization process. Accounting, Auditing and Accountability Journal, 17(4), 506–542. [CrossRef]
• DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Lnstitu- tional isomorphism and collective rationality in organizational fields’. American Sociological Review, 48(2), 147–160. [CrossRef]
• DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. [CrossRef]
• Dogan, E., & Ozturk, I. (2017). The influence of renewable and non-renew- able energy consumption and real income on CO 2 emissions in the USA: Evidence from structural break tests. Environmental Science and Pollution Research International, 24(11), 10846–10854. [CrossRef]
• Dogan, E., & Turkekul, B. (2016). CO2 emissions, real output, energy con- sumption, trade, urbanization and financial development: Testing the EKC hypothesis for the USA. Environmental Science and Pollu- tion Research International, 23(2), 1203–1213. [CrossRef]
• Emgin, Ö., & Türk, Z. (2004). Yeşil pazarlama. Mevzuat Dergisi, 78, 1–14. Eren, T., & Karasioğlu, F. (2012). Finansal tablolar analizi. Eğitim Kitabevi.
• Evci, S., & Şak, N. (2018). The effect of working capital management on profitability in emerging countries: Evidence from Turkey. In G. Kucukkocaoglu & S. Gokten (Eds.), Financial management from an emerging market perspective (pp. 205–218). IntechOpen.
• Fogler, H. R., & Nutt, F. (1975). A note on social responsibility and stock valuation. Academy of Management Journal, 18(1), 155–160. [CrossRef] Ganda, F., & Milondzo, K. S. (2018). The impact of carbon emissions on corporate financial performance: Evidence from the South African firms. Sustainability, 10(7), 2398. [CrossRef]
• GHG Protocol Scope 2. (2015). Satın Alınan Elektriğin Sebep Olduğu Sera Gazı Emisyonlarının Raporlanması. https://www.ekoenergy.org/wp- content/uploads/Summary_GHGprotocol_Scope2_Turkish.pdf
• Ghisetti, C., & Rennings, K. (2014). Environmental innovations and profit- ability: How does it pay to be green? An empirical analysis on the German innovation survey. Journal of Cleaner Production, 75, 106–117. [CrossRef]
• Gingrich, C. D. (1995). Health uncertainty and food consumption: Low- income households in Lima, Peru [Doctoral dissertation]. Iowa State University.
• Gore, A. (1992). Earth in the balance: Ecology and the human spirit. Houghton Mifflin.
• Güneysu, Y., & Atasel, O. Y. (2022). Karbon Emisyonlari Ile finansal performans Arasindaki İlişkinin İncelenmesi: Bist100 Endeksinde bir Araştirma. Fırat Üniversitesi Sosyal Bilimler Dergisi, 32(3), 1183–1193. [CrossRef]
• Hayami, H., Nakamura, M., & Nakamura, A. O. (2014). Economic perfor- mance and supply chains: The impact of upstream firms׳ waste out- put on downstream firms׳ performance in Japan. International Journal of Production Economics, 160, 47–65.
• Hsiao, C. (2005). Why panel data? Singapore Economic Review, 50(2), 143–154. [CrossRef]
• Karaca, S., & Kanışlı, E. (2015). Finansal yönetim. Fakülte Yayınevi.
• Kaya, N. E. (2021). Türkiye’nin küresel emisyonlardaki payı yüzde 1 olarak hesaplandı. https://www.aa.com.tr/tr/cevre/turkiyenin-kuresel-emisy onlardaki-payi-yuzde-1-olarak- hesaplandi/2375867
• Konuralp, G. (2005). Sermaye piyasaları analizler, kuramlar ve portföy yönetimi (2. Baskı). İstanbul: Alfa Yayınları.
• Lucas, M. T., & Noordewier, T. G. (2016). Environmental management prac- tices and firm financial performance: The moderating effect of indus- try pollution-related factors. International Journal of Production Economics, 175, 24–34. [CrossRef]
• Lucas, M. T., & Noordewier, T. G. (2016). Environmental management prac- tices and firm financial performance: The moderating effect of indus- try pollution-related factors. International Journal of Production Economics, 175, 24–34. [CrossRef]
• Mao, Z., Zhang, S., & Li, X. (2017). Low carbon supply chain firm integration and firm performance in China. Journal of Cleaner Production, 153, 354–361. [CrossRef]
• Misani, N., & Pogutz, S. (2015). Unraveling the effects of environmental outcomes and processes on financial performance: A non-linear approach. Ecological Economics, 109, 150–160. [CrossRef]
• Narayan, P. K., & Sharma, S. S. (2015). Is carbon emissions trading profit- able? Economic Modelling, 47, 84–92. [CrossRef]
• Porter, M. (1991). America’s green strategy. Scientific American, p. 168.
• Rodrigues, L. L., & Craig, R. (2007). Assessing international accounting harmonization using Hegelian dialectic, isomorphism, and Foucault. Critical Perspectives on Accounting, 18(6), 739–757. [CrossRef]
• Rokhmawati, A., Sathye, M., & Sathye, S. (2015). The effect of GHG emis- sion, environmental performance, and social performance on finan- cial performance of listed manufacturing firms in Indonesia. Procedia – Social and Behavioral Sciences, 211, 461–470. [CrossRef]
• Salahuddin, M., Alam, K., & Ozturk, I. (2016). The effects of internet usage and economic growth on CO2 emissions in OECD countries: A panel investigation. Renewable and Sustainable Energy Reviews, 62, 1226–1235. [CrossRef]
• Scott, W. R. (2004). Institutional theory. Encyclopedia of Social Theory, 11, 408–414.
• Şencan, D. (2021). Çevresel sorunların önlenmesinde karbon vergisi üzer- ine genel bir bakış. Türkiye Mesleki ve Sosyal Bilimler Dergisi, 6, 50–58.
• Sözüer, A. (2011). İşletmeleri çevreye duyarlı politikalar uygulamaya iten güçler. Organizasyon ve Yönetim Bilimleri Dergisi, 3(2), 47–56.
• Spicer, B. H. (1978). Investors, corporate social performance and infor- mation disclosure: An empirical study. Accounting Review, 53, 94–111.
• Srivastava, S. K., & Srivastava, R. K. (2006). Managing product returns for reverse logistics. International Journal of Physical Distribution and Logistics Management, 36(7), 524–546.
• Walley, N., & Whitehead, B. (1994). It’s not easy being green. Reader in Business and the Environment, 36(81), 4.
• Wang, M., Liu, J., Chan, H. L., Choi, T. M., & Yue, X. (2016). Effects of carbon tariffs trading policy on duopoly market entry decisions and price competition: Insights from textile firms of developing countries. International Journal of Production Economics, 181, 470–484. [CrossRef]
• World Resources Institute. (2004). The greenhouse gas protocol initiative: A corporate accounting and reporting standard. WRI Publication.
• Yang, S., & Zhang, X. (2017). Study on the U-shaped relationship of carbon constraint on the large thermal power plants’ profitability. Natural Hazards, 89(3), 1421–1435. [CrossRef]
• Yu, Y., Wang, D. D., Li, S., & Shi, Q. (2016). Assessment of US firm-level climate change performance and strategy. Energy Policy, 92, 432–443. [CrossRef]
• Yükçü, S., & Atağan, G. (2010). TOPSIS yöntemine göre performans değerleme. Muhasebe ve Finansman Dergisi, 45, 28–35.
• Zafar, M. W., Mirza, F. M., Zaidi, S. A. H., & Hou, F. (2019). The nexus of renew- able and nonrenewable energy consumption, trade openness, and CO 2 emissions in the framework of EKC: Evidence from emerging economies. Environmental Science and Pollution Research Interna- tional, 26(15), 15162–15173. [CrossRef]