ESG-Based Sustainability Performance and its Impact on Cost of Capital: International Evidence from the Energy Sector

Yilmaz, Ilker

doi:10.33094/ijaefa.v12i2.529

Cited by 12 publications

(8 citation statements)

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“…In essence, heightened transparency in ESG disclosure corresponds to diminished costs associated with enterprise debt. Our model’s findings concur with earlier studies by Crifo et al (2017), Prasad et al (2022), Raimo et al (2021), Yeh et al (2020) and Yilmaz (2022).…”

Section: Empirical Results and Discussionsupporting

confidence: 93%

“…However, no significant correlation exists between ESG scores and WACC. ROA is significantly inversely correlated to both COE and COD (Yilmaz, 2022), as reduced profitability might increase the risk perception of the capital providers, prompting them to demand high returns for invested capital. The variance inflation factor (VIF) analysis is used to determine how multicollinear the explanatory variables are.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

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Corporate Sustainability and Capital Costs: A Panel Evidence from BRICS Countries

Dua,

Sharma

2024

Indian Journal of Corporate Governance

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Global sustainability challenges have triggered a sense of accountability in society, culminating in the growing incorporation of sustainability into corporate operations. This article aims to investigate the influence of environmental, social and governance (ESG) disclosure on a company’s cost of financing in emerging markets. Furthermore, the article examines the criticality of separate pillars of ESG in determining the companies’ capital costs using a panel dataset of 192 non-financial companies drawn from the equity indices from the BRICS countries for 10 years, spanning 2011–2020. Pooled Ordinary Least Square and fixed-effect panel regressions are used to test the hypothesised relationships. The robustness of our findings is validated by the application of the System Generalised Methods of Moments approach. The results show that ESG disclosure scores and their individual component scores are positively associated with the cost of equity and weighted average cost of capital. In contrast, there is a negative relationship with the cost of debt. Results demonstrate the apprehensions of equity providers and the reception of debt providers towards the companies’ ESG adoption. The governance pillar has the most significant influence on capital costs. The study enables managers to evaluate the economically ideal capital structure for ESG-compliant enterprises strategically.

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Section: Empirical Results and Discussionsupporting

confidence: 93%

Section: Empirical Results and Discussionmentioning

confidence: 99%

Corporate Sustainability and Capital Costs: A Panel Evidence from BRICS Countries

Dua,

Sharma

2024

Indian Journal of Corporate Governance

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“…Several investors today use environmental, social, and governance (ESG) metrics to analyze an organization's ethical impact and sustainability practices. Yilmaz [17] shows that as firms perform better in the pillars of sustainability, they have a lower perceived riskiness resulting in a lower cost of capital. Eliwa et.…”

Section: Corporate Sustainabilitymentioning

confidence: 99%

Perspective Chapter: Sustainability and Corporate Innovation

Sarajoti¹,

Chatjuthamard²,

Treepongkaruna³

et al. 2023

Business, Management and Economics

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Sustainable development is one of the prominent goals promoted by the United Nations (UN) and identifies innovation as one of the important elements. Therefore, sustainable development is a combination of both developmental and environmental imperatives through innovation, implying a new way of science incorporating the technology integration and social philosophy. This chapter discusses how sustainability creates business opportunities and be counted toward the future investment for the firms. It is the path leading from creative thinking and corporate innovation. Thus, the relationship between corporate innovation and sustainability plays a vital role for firms to gain competitive advantages such as gaining value creation, creating cooperation value with the stakeholders, tapping into new markets and customer segments, and creating a transformational solution. Firms can be sustainable not only by profit maximization, but also address the maximization of the interests’ stakeholders by not causing any impact on nature and environmental resources.

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“…From a diversity perspective, the emphasis and creation of sustainability are evident in a variety of changes globally [39]. Previously, they were focused on sustainable development and the many transformations reported in the literature [40]. From the 1970s to the 1980s, most of the studies were focused on social reporting, but the focus turned to environmental reporting in the 1990s.…”

Section: Evolution Of Corporate Sustainability (Cs)mentioning

confidence: 99%

Evaluation of Total Quality Management in Turkish Pharmaceutical Companies: A Case Study

Qin

Duan

Al-hourani³

et al. 2022

Sustainability

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Corporate sustainability is one of the most challenging issues in superior organizations, and is always one of the main concerns of top managers. The importance of quality management in organizations—especially as total quality management—is considered to be one of the most important indicators of sustainability. We cannot achieve sustainability and its important sub-parameters—including economic and social sustainability—by merely employing the value of knowledge creation and knowledge sharing, without also focusing on customers, leadership, and process management. We designed appropriate questionnaires to test this premise, and then distributed and collected them from various reputable pharmaceutical companies in Turkey. We recorded the opinions of managers, supervisors, and deputies of different departments at various organizational levels. To analyze the data, SPSS software—one of the well-known applications in this field—was used. The new regular economy introduces new requirements for newly built public universities or pharmaceutical companies; therefore, their transformation and development are imminent. For example, colleges should comply with the new requirements of economic and social transformation for higher education, innovate their talent training models, and cultivate higher ideological standards and morality while instilling strong practical ability in their graduates to serve society. The results of this study not only illustrate the positive effects of total quality management on firms’ sustainability, but also validate knowledge management and its sub-variables, including knowledge creation and sharing. In addition, they confirm the mediating role of sub-variables, including knowledge creation and knowledge sharing in companies, influencing the effects of total quality management on the sustainability of companies.

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ESG-Based Sustainability Performance and its Impact on Cost of Capital: International Evidence from the Energy Sector

Cited by 12 publications

References 0 publications

Corporate Sustainability and Capital Costs: A Panel Evidence from BRICS Countries

Corporate Sustainability and Capital Costs: A Panel Evidence from BRICS Countries

Perspective Chapter: Sustainability and Corporate Innovation

Evaluation of Total Quality Management in Turkish Pharmaceutical Companies: A Case Study

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