Firat University Journal of Social Sciences 1300-9702 2149-3243 Fırat University 10.18069/firatsbed.1684374 Monetary-Banking Capital Market Para-Bankacılık Sermaye Piyasaları Utilising Environmental Social Governance Rating for Predicting Financial Risk: FTSE 100 Finansal Riski Öngörmede Çevresel, Sosyal ve Yönetişim Derecelendirmesinin Kullanımı: FTSE 100 Örneği https://orcid.org/0000-0003-0918-7441 Akin Isik Bath Spa University, https://orcid.org/0000-0002-9021-869X Akın Meryem Bath Spa University, https://orcid.org/0000-0003-1856-3517 Bağcı Erdem BANDIRMA ONYEDİ EYLÜL ÜNİVERSİTESİ https://orcid.org/0009-0000-7633-1306 Singh Arshdeep Bath Spa University 09 23 2025 35 3 1387 1404 04 26 2025 07 29 2025 Copyright © 1987, Firat University Journal of Social Sciences 1987 Firat University Journal of Social Sciences

The focus of this research is on evaluating the ESG ratings of various FTSE 100 companies and their impact on financial risk. The study aims to analyze how ESG ratings affect the financial risk of FTSE 100 companies and to reveal the impact of profitability and liquidity on ESG ratings. Therefore, we examine the relationship between ESG ratings (Environmental, Social, and Governance) and financial risk for FTSE 100 companies. ESG factors are increasingly recognized as indicators of a company's ability to sustain itself and its financial performance. The utilization of ESG rating data offers several potential benefits, including providing investors and analysts with insights to evaluate companies' long-term sustainability and resilience. The study aims to reveal the connection between ESG ratings and financial risk, as well as investigate the influence of profitability and liquidity on ESG ratings. The research utilizes quantitative methodologies, including regression analysis and panel unit root tests, to analyze the data collected from FTSE 100 companies. The findings suggest a positive association between higher ESG ratings and better financial health, as well as a positive impact of profitability on ESG ratings. However, liquidity metrics do not significantly affect ESG ratings.

Bu araştırmanın odak noktası, çeşitli FTSE 100 şirketlerinin ESG derecelendirmelerinin değerlendirilmesi ve finansal risk üzerindeki etkileridir. Çalışmanın amaçları, ESG derecelendirmelerinin FTSE 100 şirketlerinin finansal riskini nasıl etkilediğini analiz etmek ve kârlılık ve likiditenin ESG derecelendirmeleri üzerindeki etkisini ortaya koymaktır. Bu nedenle, FTSE 100 şirketleri özelinde (Çevresel, Sosyal ve Yönetişim) ESG derecelendirmeleri ile finansal risk arasındaki ilişki incelenmektedir. ESG faktörleri, bir şirketin sürdürülebilirliğini ve finansal performansını devam ettirme kapasitesinin göstergeleri olarak giderek daha fazla kabul görmektedir. ESG derecelendirme verilerinin kullanımı, yatırımcılara ve analistlere şirketlerin uzun vadeli sürdürülebilirlik ve dayanıklılıklarını değerlendirmede çeşitli faydalar sunmaktadır. Bu çalışmanın amacı, ESG derecelendirmeleri ile finansal risk arasındaki ilişkiyi ortaya koymak ve kârlılık ile likiditenin ESG derecelendirmeleri üzerindeki etkisini araştırmaktır. Araştırmada, FTSE 100 şirketlerinden elde edilen veriler, regresyon analizi ve panel birim kök testleri gibi nicel yöntemler kullanılarak analiz edilmiştir. Bulgular, yüksek ESG derecelendirmeleri ile daha iyi finansal sağlık arasında pozitif bir ilişki olduğunu ve kârlılığın ESG derecelendirmeleri üzerinde olumlu bir etkisi bulunduğunu göstermektedir. Ancak, likidite ölçütlerinin ESG derecelendirmeleri üzerinde anlamlı bir etkisi bulunmamıştır.

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