INVESTIGATION OF THE IMPACT OF ESG PERFORMANCE ON FINANCIAL AND MARKET PERFORMANCE ON THE JAPANESE AUTOMOTIVE INDUSTRY

Abstract

The automotive sector, one of the industries where the combination of sustainability and developing technology is paramount, holds a prominent position within economies, both in its main and sub-industry sectors. Pressures stemming from environmental concerns and increasingly prominent social responsibility policies are redefining sustainability approaches in the automotive industry. This study was conducted to examine the relationship between ESG and financial and market performance in the Japanese automotive industry. The research was conducted on 22 companies in the main and sub-industry automotive sector listed on the Tokyo Stock Exchange, Japan, between 2017 and 2021. Using panel data analysis, the study employed dependent variables Return on Assets and Tobin-Q, while the independent variables were ESG score, Debt Ratio, and Asset Size. The findings indicate that ESG has a significant but negative impact on Return on Assets. This was interpreted as the reduction in profits from high-cost ESG investments. ESG had no impact on Tobin-Q, while asset size had a negative impact on Tobin-Q. It has been concluded that investments in the Japanese automotive sector are made with ESG sensitivity and that there is awareness that the company may have a positive impact on its profitability and market value in the future.

Keywords

• ESG
• Financial performance
• Automotive industry
• Sustainability

ESG PERFORMANSININ FİNANSAL VE PİYASA PERFORMANSINA ETKİSİNİN JAPON OTOMOTİV SEKTÖRÜ ÜZERİNDE İNCELENMESİ

Abstract

Sürdürülebilirlik ve gelişen teknolojinin bir araya gelmesinin en önem kazandığı endüstrilerden olan otomotiv sektörü, ana ve yan sanayisiyle ekonomilerde dikkat çeken bir konumdadır. Çevresel kaygılara bağlı baskılarla ve daha fazla ön plana çıkan sosyal sorumluluk politikalarıyla, otomotiv sanayinde sürdürülebilirliğe yönelik yaklaşımlar yeniden tanımlanmaktadır. Bu çalışma, Japon otomotiv sanayinde ESG’nin finansal ve piyasa performansı üzerindeki ilişkiyi incelemek amacıyla yapılmıştır. Araştırmanın kapsamını 2017-2021 yılları arasında Japonya Tokyo Borsası’na kayıtlı ana ve yan otomotiv sektöründeki 22 işletme oluşturmaktadır. Panel veri analizi uygulanan çalışmada bağımlı değişkenler aktif karlılığı ve Tobin’s Q olurken, bağımsız değişken ESG skoru, kontrol değişkenleri, kaldıraç oranı ve aktif büyüklüğüdür. Bulgular, ESG’nin aktif karlılığı üzerinde anlamlı ve negatif bir etkisinin olduğunu göstermektedir. Bu durum, yüksek ESG performansına sahip işletmelerin karlarında azalma olduğu anlamına gelmektedir. ESG’nin, Tobin’s Q üzerinde bir etkisinin olmadığı ancak, aktif büyüklüğünün Tobin’s Q üzerinde negatif bir etkisinin olduğu anlaşılmıştır. Japon otomotiv sektöründe, ESG hassasiyeti ile yatırım yapıldığı, işletmenin karlılık ve piyasa değerine gelecekte olumlu etkisinin olabileceğine dair farkındalığın oluştuğu söylenebilir.

Keywords

• ESG
• Finansal performans
• Otomotiv endüstrisi
• Sürdürülebilirlik

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