A Research on the Effects of Sustainability Reports Published in the Banking Sector on Financial Performance

Abstract

In studies comparing sustainability performance and financial performance, it is seen that banking is generally excluded from the sample. The main purpose of this study is to analyze the effect of the statements made within the scope of the sustainability report in the banking sector on the financial performance of banks. 9 banks that were included in the BIST Sustainability Index at least once between 2010 and 2020 were included in the analysis. Environment, human resources, product responsibility and society as areas of sustainability; Return on assets and equity and net interest margin were determined as financial performance criteria. In the study, in which non-parametric statistical tests and Panel data analysis were used, public-private status and bank sizes were used as dummy variables. As a result, it has been found that the sustainability report disclosures have a significant effect only on the return on assets, while the sustainability report disclosures do not have a significant impact on the return on equity and net interest margin. In addition, when the effect of the sustainability report disclosures on the profitability of assets is examined in terms of its dimensions, it has been determined that the statements made regarding the environmental and human resources dimensions have a negative effect on the return on assets.