Impacts of Environmental, Social and Governance (ESG) Performance on Market Value: The Role of Firm Size

Abstract

This study examines the relevance of environmental, social and governance (ESG) performance to market value, and the role of firm size in this relevance for companies listed in Borsa Istanbul (BIST), one of the developing markets. Following results were obtained from extended static linear panel regression models based on Ohlson (1995). Firm size has an important role in explaining the differences between firms in terms of the effects of ESG criteria on market value. Both ESG criteria and each of E, S, and G components have a significant positive effect on the market value separately, under the influence of firm size. In relatively larger companies, the positive effects are greater.

Keywords

• Environmental Social and Governance (ESG)
• Market Value
• Static Panel Data Analysis
• Borsa Istanbul (BIST)

Çevresel, Sosyal ve Kurumsal Yönetim (ESG) Performansının Piyasa Değeri Üzerindeki Etkisi: Firma Büyüklüğünün Rolü

Abstract

Çalışmada gelişmekte olan piyasalardan Borsa İstanbul’da (BIST) işlem gören işletmelerin çevresel, sosyal ve kurumsal yönetim (ESG) kriterleri konusundaki performanslarının piyasa değeri ile ilişkisi ve bu ilişkide firma büyüklüğünün rolü araştırılmaktadır. Ohlson (1995) değerleme modelini temel alan genişletilmiş statik doğrusal panel regresyon modeli tahminlerinden izleyen sonuçlar elde edilmiştir. Firma büyüklüğü, ESG kriterlerinin piyasa değeri üzerindeki etkileri bakımından firmalar arası farklılıkları açıklamada önemli bir role sahiptir. Firma büyüklüğünün etkisi altında hem ESG kriterlerinin hem de E, S ve G bileşenlerinin ayrı ayrı her birinin piyasa değeri üzerinde anlamlı pozitif etkisi vardır. Görece daha büyük şirketlerde pozitif etkilerin daha büyük olduğu görülmektedir.

Keywords

• Çevresel Sosyal ve Kurumsal Yönetim (ESG)
• Piyasa Değeri
• Statik Panel Veri Analizi
• Borsa İstanbul (BIST)

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