Title: Impacts of carbon and energy aspects on financial performance: a case study

Authors: Halil Emre Akbaş; Hasan Ağan Karaduman; Seda Canikli

Addresses: Department of Business Administration, Yildiz Technical University, Istanbul, Turkey ' Department of Economics, Yildiz Technical University, Istanbul, Turkey ' Department of Business Administration, Yildiz Technical University, Istanbul, Turkey

Abstract: Companies attempt to find ways of improving environmental performance and financial performance simultaneously while maintaining a balance between their actions and consequences for climate change. The primary objective of this study is to investigate the impacts of carbon and energy aspects on corporate financial performance using available dataset for Turkish listed companies. Financial performance is measured by both an accounting-based indicator, return on assets (ROA) and a market-based indicator, Tobin's q. The main finding stemmed from the estimated panel data regressions is twofold. The first one implies that carbon performance has a positive impact on ROA, which is a sign of the possibility of simultaneous improvement in both environmental performance and profitability. Our second main finding is that carbon performance and energy performance do not affect Tobin's q revealing that the market does not respond either positively or negatively to environmental performance of firms in Turkey.

Keywords: carbon performance; energy performance; financial performance; Turkish companies; global warming; climate change; sustainable development; carbon emissions; carbon intensity; energy consumption; energy intensity; return on assets; ROA; profitability; Tobin's q.

DOI: 10.1504/IJGW.2021.112891

International Journal of Global Warming, 2021 Vol.23 No.2, pp.118 - 128

Received: 02 Jun 2020
Accepted: 09 Jul 2020
Published online: 08 Feb 2021 *

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