@article{article_1802359, title={Sustainability Index and Stock Performance: An Empirical Study on Banks Operating in Türkiye}, journal={JOEEP: Journal of Emerging Economies and Policy}, volume={10}, pages={200–210}, year={2025}, author={Kurum, Mustafa Eser}, keywords={BIST, Sustainability Index, Banking sector, Stock prices, Panel Fourier ARDL}, abstract={This study investigates the impact of inclusion in the BIST Sustainability Index on stock prices of banks operating in Türkiye. In the analysis, conducted with monthly panel data from January 2013 to May 2025, short- and long-term dynamics are examined using the Panel Fourier ARDL model. Trading volume, inflation, and the policy rate are included as control variables, while Fourier terms are employed to capture structural breaks. The empirical findings reveal that inclusion in the sustainability index has a statistically significant and positive impact on stock prices in the short term, indicating that investors consider inclusion as a positive market signal. Trading volume is found to be the strongest determinant of stock prices in the short and long term, while inflation has a positive but weak long-term effect, and the policy rate has no significant effect. The results demonstrate that inclusion in the sustainability index enhances market confidence and stock valuations, while also highlighting the growing role of sustainability in shaping financial performance in emerging financial markets like Türkiye, offering important implications for policy makers, investors, and bank managers.}, number={2}, publisher={Seyfettin ERDOĞAN}