DOES HEALTHCARE FIRMS’ LEVEL OF COMPLIANCE WITH CORPORATE GOVERNANCE AND SUSTAINABILITY PRINCIPLES REDUCE THE VOLATILITY OF THEIR STOCK PRICES? A CASE OF BORSA ISTANBUL

Authors : Tolga Tümer, Ali Rıza Zafer Sayar, Dilaver Tengilimioğlu

Pages : 621-630

Doi:10.61859/hacettepesid.1683692

View : 123 | Download : 177

Publication Date : 2025-12-24

Article Type : Research Paper

Abstract :Healthcare firms contribute greatly to both people’s health and countries’ economies. Being able to easily collect sufficient funds from the financial markets is very important for healthcare firms, just as it is for all other firms. It is expected that higher compliance with corporate governance and sustainability principles reduces firms’ stock price volatility by improving investor demand and trust. In this way, firms may collect more funds from the financial markets more easily. Within this context, we empirically investigated the impact of the Turkish publicly listed healthcare firms’ level of compliance with corporate governance and sustainability principles on their stock price volatility. Our findings suggest that the healthcare firms’ level of compliance with corporate governance principles reduces stock price volatility; however, the effect was not statistically significant. In addition, we found that the healthcare firms’ level of compliance with sustainability principles does not have a negative impact on their stock price volatility. This may be because the fields of corporate governance and sustainability, and the related non-financial reports, are still relatively new in Türkiye.
Keywords : Sağlık ekonomisi ve finansı, Kurumsal yönetim, Sürdürülebilirlik, Hisse senedi fiyat dalgalanması, Borsa İstanbul (BİST)

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