Exploring the Non-Linear Impacts of Digital Maturity on Corporate Sustainability: New Evidence from Türkiye

Mine Aksoy, Mustafa K. Yılmaz, Esra Cengiz Tırpan, Mehtap Özşahin, Erman Coşkun and Özgür Uysal

Journal of Research in Economics, Politics & Finance, 2025, vol. 10, issue SI, 107-131

Abstract: This study explores the impact of digital maturity on the environmental, social, and governance (ESG) performance of Turkish companies listed on Borsa Istanbul. The analysis is based on a sample of 49 non-financial firms included in the BIST 100 Index, covering the period of 2016-2022. A digital maturity index is constructed using a text mining approach to quantify the frequency of digital-related terms in the firm’s annual reports. Panel data analysis is employed to investigate the relationship between digital maturity and ESG performance. The findings indicate that digital maturity has a significant inverse U-shaped effect on social performance, an insignificant inverse U-shaped effect on environmental performance, and an insignificant U-shaped effect on corporate governance performance. The results suggest that moderate levels of digitalization enhance social performance, whereas excessive digitalization may have an adverse effect.

Keywords: Digital Maturity; Emerging Markets; ESG Performance; Sustainability; Türkiye (search for similar items in EconPapers)
JEL-codes: G10 G30 O33 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ahs:journl:v:10:y:2025:i:si:p:107-131

DOI: 10.30784/epfad.1813705

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