The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability Index
Although firms are important in terms of economic development, they use energy to carry out their production activities and can thus cause environmental pollution. With the increase in environmental pollution, the level of societal awareness regarding the protection of nature has also increased. Thi...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Istanbul University Press
2023-08-01
|
| Series: | Muhasebe Enstitüsü Dergisi |
| Subjects: | |
| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/A05963F6982F44DEA8C340FB775FC909 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850036259756441600 |
|---|---|
| author | Yusuf Güneysu |
| author_facet | Yusuf Güneysu |
| author_sort | Yusuf Güneysu |
| collection | DOAJ |
| description | Although firms are important in terms of economic development, they use energy to carry out their production activities and can thus cause environmental pollution. With the increase in environmental pollution, the level of societal awareness regarding the protection of nature has also increased. This situation imposes important responsibilities on firms in terms of ensuring environmental sustainability. Likewise, investors can consider non-financial information alongside financial information when making investment decisions. For this reason, environmental, social, and corporate governance (ESG) components are used for non-financial information disclosures. This study aims to analyze the effect the ESG performance of firms whose stocks are traded on the Borsa Istanbul (BIST) Sustainability Index has on cash holdings. In line with this, the study uses panel data analysis to estimate data for the period of 2015-2021. As a result, the study has determined both the overall ESG score as well as the scores of the individual ESG components to positively affect cash holdings. Moreover, financial leverage, market-to-book value ratio, and net working capital have been determined to positively impact and retained earnings to negatively impact cash holdings. |
| format | Article |
| id | doaj-art-daf0452c07684469b9640cf4a650ec1d |
| institution | DOAJ |
| issn | 2667-6982 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | Muhasebe Enstitüsü Dergisi |
| spelling | doaj-art-daf0452c07684469b9640cf4a650ec1d2025-08-20T02:57:13ZengIstanbul University PressMuhasebe Enstitüsü Dergisi2667-69822023-08-0169455610.26650/MED.1314375123456The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability IndexYusuf Güneysu0https://orcid.org/0000-0002-6809-1995Trabzon Üniversitesi, Trabzon, TurkiyeAlthough firms are important in terms of economic development, they use energy to carry out their production activities and can thus cause environmental pollution. With the increase in environmental pollution, the level of societal awareness regarding the protection of nature has also increased. This situation imposes important responsibilities on firms in terms of ensuring environmental sustainability. Likewise, investors can consider non-financial information alongside financial information when making investment decisions. For this reason, environmental, social, and corporate governance (ESG) components are used for non-financial information disclosures. This study aims to analyze the effect the ESG performance of firms whose stocks are traded on the Borsa Istanbul (BIST) Sustainability Index has on cash holdings. In line with this, the study uses panel data analysis to estimate data for the period of 2015-2021. As a result, the study has determined both the overall ESG score as well as the scores of the individual ESG components to positively affect cash holdings. Moreover, financial leverage, market-to-book value ratio, and net working capital have been determined to positively impact and retained earnings to negatively impact cash holdings.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/A05963F6982F44DEA8C340FB775FC909cash holdingsesg scorebist sustainability |
| spellingShingle | Yusuf Güneysu The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability Index Muhasebe Enstitüsü Dergisi cash holdings esg score bist sustainability |
| title | The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability Index |
| title_full | The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability Index |
| title_fullStr | The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability Index |
| title_full_unstemmed | The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability Index |
| title_short | The Role of Environmental, Social, and Corporate Governance Activities in Cash Holding Policies: The Case of the BIST Sustainability Index |
| title_sort | role of environmental social and corporate governance activities in cash holding policies the case of the bist sustainability index |
| topic | cash holdings esg score bist sustainability |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/A05963F6982F44DEA8C340FB775FC909 |
| work_keys_str_mv | AT yusufguneysu theroleofenvironmentalsocialandcorporategovernanceactivitiesincashholdingpoliciesthecaseofthebistsustainabilityindex AT yusufguneysu roleofenvironmentalsocialandcorporategovernanceactivitiesincashholdingpoliciesthecaseofthebistsustainabilityindex |