Corporate Social Responsibility Performance and Financial Risk Dynamics in Turkish Companies Listed on Borsa Istanbul

Authors : Erdoğan Ceylan, Salih Mutlu, Rasim Şimşek

Pages : 104-119

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Publication Date : 2024-12-30

Article Type : Research Paper

Abstract :The focus of this investigation is to analyse the link between the extent of corporate social responsibility (CSR) performance and the adoption of risk-taking behaviours within Turkish-listed companies on the Borsa Istanbul from 2010 to 2022. Employing OLS regression in a panel data structure, the findings underscore a negative relationship between CSR performance proxied by ESG and its individual pillars which are environmental, social, and governance and financial risk level of the companies. Across diverse market and accounting risk measures, companies with higher CSR performance showcase consistently reduced levels of Idiosyncratic Risk, Total Risk, Asset Return Risk, and Default Risk. These findings suggest the risk-mitigating potential of robust CSR practices, addressing the gap regarding the impact of the social responsibility performance of the Turkish-listed companies to accounting and market-based assessments of risk.
Keywords : Kurumsal Sosyal Sorumluluk, ESG, Sürdürülebilirlik, Risk