Does Inclusion in the Sustainability Index Contribute to the Financial Performance of the Companies: Evidence from Developing Countries

Begüm Güler and Füsun Küçükbay ()
Additional contact information
Begüm Güler: Manisa, Turkiye
Füsun Küçükbay: Celal Bayar University Faculty of Business Administration, Manisa, Turkiye

Journal of Economy Culture and Society, 2022, vol. 66, issue 66, 307-317

Abstract: This study investigates whether the performance of the companies is affected when they are included in the Sustainability Index. The study deals with companies operating in Brazil and Turkiye, in this respect, the panel data analysis technique is applied. ROA (Return On Assets) is used for the dependent variable, while independent variables are debt/ equity ratio, company size, operational ratio and the Sustainability Index. The results of the study reveal that taking part in the Sustainability Index has a statistically significant positive effect on profitability for both Brazil and Turkiye. When the other results are analyzed, it is seen that there is a negative relationship between the debt / equity ratio and ROA for the case of Turkiye.

Keywords: Sustainability Index; Financial Performance; Panel Data Analysis (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/6B26485C735D49F6B9D488EAC2792463 (application/pdf)
https://iupress.istanbul.edu.tr/en/journal/jecs/ar ... developing-countries (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:ist:iujecs:v:66:y:2022:i:0:p:307-319

DOI: 10.26650/JECS2021-927156

Access Statistics for this article

Journal of Economy Culture and Society is currently edited by Veysel Bozkurt

More articles in Journal of Economy Culture and Society from Istanbul University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Istanbul University Press Operational Team (Ertuğrul YAŞAR) ( this e-mail address is bad, please contact ).