Analysis of the Impact of Corporate Governance on Sustainability for BIST Companies

Abstract

Considering the economic, environmental, and social dimensions of corporate governance and corporate sustainability together will bring competitive advantage to businesses as well as efficiency and productivity. From this point of view, it is obvious that developments in corporate governance and corporate sustainability may have positive reflections on the performance of businesses. A good governance structure concerns not only shareholders, but also society and stakeholders. Today, in addition to financial performance, ESG scores also play an active role in increasing the value of companies. If companies give more importance to environmental and social activities, the trust of the stakeholders and society in the company increases and a positive reputation is formed towards the company. The aim of the study is to analyze the relationship between Borsa Istanbul corporate governance index and sustainability index for the period 2016.01-2022.01. As a result of the cointegration analysis, it was determined that the corporate governance index was 51.7% related to the sustainability index.