The Impact of Corporate Governance on Sustainability Disclosures: A Comparison from the Perspective of Financial and Non-Financial Firms

Asuman Erben Yavuz, Bade Ekim Kocaman, Mesut Doğan (), Adalet Hazar, Şenol Babuşcu and Raikhan Sutbayeva
Additional contact information
Asuman Erben Yavuz: Vocational School of Social Sciences, Baskent University, 06490 Ankara, Türkiye
Bade Ekim Kocaman: International Finance and Banking, Baskent University, 06490 Ankara, Türkiye
Mesut Doğan: Banking and Insurance, Bilecik Seyh Edebali University, 11230 Bilecik, Türkiye
Adalet Hazar: International Finance and Banking, Baskent University, 06490 Ankara, Türkiye
Şenol Babuşcu: International Finance and Banking, Baskent University, 06490 Ankara, Türkiye
Raikhan Sutbayeva: Department Management, Yessenov University, 130000 Aktau, Kazakhstan

Sustainability, 2024, vol. 16, issue 19, 1-21

Abstract: This study explores the impact of corporate governance on firms’ environmental, social, and governance (ESG) performance, with a focus on board characteristics and ownership structures. Using a panel dataset of 6 financial and 16 non-financial firms listed on the Borsa Istanbul (BIST) from 2013 to 2021, the study investigates how ownership (blockholder, foreign, or institutional) and board composition (size, gender diversity, and foreign directors) influence ESG disclosures. The analysis distinguishes between financial and non-financial firms, revealing that corporate governance mechanisms affect ESG performance differently across sectors. Foreign ownership and the presence of foreign and female board members are positively associated with higher ESG disclosures, while ownership concentration is negatively correlated with ESG performance. These findings suggest caution when comparing firms across sectors based solely on ESG disclosures, as governance factors influence outcomes differently in financial and non-financial contexts. This study provides a detailed analysis of effective corporate governance mechanisms in Türkiye, emphasizing the crucial roles of ownership structure and board composition in enhancing ESG transparency. The results offer valuable insights for regulators and investors, contributing to a nuanced understanding of how governance structures shape ESG performance in both financial and non-financial firms in Türkiye.

Keywords: ESG disclosure; corporate governance; boards of directors; ownership structure (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/19/8400/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/19/8400/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:19:p:8400-:d:1486932

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().