The impact of environmental performance on capital structure and firm performance: the case of Turkey
Yükleniyor...
Tarih
2021
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Emerald Group Publishing
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
Purpose – The purpose of this study is to investigate the effect of environmental performance on the capital
structure and financial performance of Turkish listed firms.
Design/methodology/approach – This study used data of 49 firms listed on Istanbul Stock Exchange
during the period between 2014 and 2019, resulting in 205 firm-year observations. The environmental
performance data were drawn from the carbon disclosure project Turkey climate change reports. Ordinary
least squares and binary logistic regression models were used to examine whether environmental
performance impacts the capital structure and financial performance.
Findings – The findings of this research revealed that environmental performance significantly positively
affects the firm leverage. Findings also showed that environmental performance has a significantly positive
impact on return on assets, operating profitability and return on equity, but no significant impact on stock
returns.
Practical implications – Given the increased borrowing costs for Turkish firms after the 2018 currency
crisis in Turkey, the findings of this study are very important as they enable managers of Turkish firms to
make better decisions related to capital structure and to understand the role of environmental performance in
reducing the cost of debt and enhancing financial performance.
Originality/value – To the author’s knowledge, this research is the first to investigate the effect of
environmental performance on capital structure in the Turkish context, and is one of few that explained how
environmental performance affects the financial performance of Turkish firms
Açıklama
WOS:000660544300001
Anahtar Kelimeler
Istanbul stock exchange, Financial performance, Capital structure, Environmental performance
Kaynak
Society and Business Review
WoS Q Değeri
N/A
Scopus Q Değeri
Q1
Cilt
16
Sayı
2
Künye
Kalash, I. (2021).The impact of environmental performance on capital structure and firm performance: the case of Turkey. Society and Business Review, 16(2), 255-277.
