A Research on the Effects of Sustainability Reports Published in the Banking Sector on Financial Performance

Abstract

Banking sector is generally taken out of sample while the sustainability performance, and the financial performance are compared with each other. The core aim of this study is to analyze the effect of the declarations made in the cope of sustainability reports on the financial performance in the banking sector. Seven banks were included in the study which were placed at least one time in BIST Sustainability Index in between 2010-2017 years. Environment, human resources, product liability and community involvement were determined as sustainability criteria and return on assets, return on equity and net interest margin were determined as financial performance criteria. Non-Parametric Statistic Test and Panel Data Analysis were used for analysis and types, and the sizes of banks were selected as dummy variables. As a result, it is found that the declarations of sustainability reports have a significant effect only on return on assets and have no significant effect on return on equity and net interest margin. And also, when we analyzed the relationship of sustainability criteria and return on assets, we found that the declarations about environment and human resources have negative effects on return on assets.

The moderating role of sector risk in the relationship between ESG and financial performance: Evidence from top companies in Malaysia

“…Gull [35] discovered a negative relationship where firms with lower environmental performance than their industry peers exhibited better financials. Diṅçer and Altınay [36] also reported sustainability reports negatively impacting financial performance in Turkish banks. These findings indicate potential trade-offs or context-specific factors that can dampen positive environmental performance effects.…”

Katılım Bankacılığı ve Sürdürülebilirlik: Finansal Dönüşümde İkili Etki

“…Aysan ve Büyükdeniz (2022)'in ise sürdürülebilir ekonominin yeşil tahviller yoluyla finansmanı üzerine bir çalışması bulunmaktadır. Dinçer ve Altınay (2022) ise bankacılık sektöründe yayınlanan sürdürülebilirlik raporlarının finansal performans üzerindeki etkileri üzerine bir çalışma yapmışlardır. İslami finansta sürdürülebilirlik ya da katılım bankalarındaki sürdürülebilirliğe dair ise Canbaz (2022)'ın çalışması önemlidir.…”