Browsing by Author "Komath, MAC"

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    The relationships between corporate sustainability and market value: mediating role of revenue and moderating role of profitability
    Komath, MAC; Sayilir, Ö; Dogan, M
    This study attempts to analyze the relationships between corporate sustainability performance and market value. We employ 2018-2022 annual data obtained from Refinitiv ESG Database comprising 5450 companies. We utilize Hayes Process Modeling to investigate this relationship and also the mediating role of revenue and the moderating role of profitability in this relationship. Our findings show that all corporate sustainability performance measures (overall ESG, environmental pillar, social pillar, and governance pillar scores) have a significant relationship with the market value of firms. Total revenues seem to mediate the relationship between corporate sustainability performance and market value. The direct effect of corporate sustainability performance measures on the market value as well the indirect effect of corporate sustainability performance on market value through revenues is moderated by profitability (Return on Assets). Our findings may provide valuable insights for companies seeking to leverage corporate sustainability performance to improve market value.
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    Impact of corporate governance and related controversies on the market value of banks
    Komath, MAC; Dogan, M; Sayilir,
    Effective corporate governance of financial institutions, particularly in the banking sector, is vital for the stability of the financial system and the prevention of financial crises. Thus, this study examines the impact of corporate governance and related controversies on the market value of banks. For this purpose, we utilized Refinitiv's corporate governance scores, including manage-ment, shareholder value, and corporate social responsibility (CSR), as well as its corporate governance controversies scores to analyze their impact on the market value of 242 banks in 43 countries. Using Refinitiv's ESG database from 2017 to 2021, we conducted a path analysis and found a positive and statistically significant relationship between the CSR strategy scores and the market value of banks as well as between the management scores and the market value of banks. Moreover, there is a statistically significant relationship between the corporate governance controversies scores and the market value of banks.
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    Prediction of market value of firms with corporate sustainability performance data using machine learning models
    Dogan, M; Sayilir,Ö; Komath, MAC; Çimen, E
    This study attempts to build models for prediction of market value of firms with Corporate Sustainability Performance data using machine learning models. We analyze a comprehensive global dataset of 5,450 firms operating in 10 sectors. Machine learning models of Random Forest, XGBoost, SVM, and Nearest Neighbor models were constructed with E,S,G,C scores (Environmental, Social, Governance, and ESG Controversies) and financial ratios obtained from the Refinitiv (LSEG) Database. The most suitable model (Random Forest Model) built for Market Capitalization prediction shows that Environmental (E) and ESG Controversies (C) scores stand out as important predictors of market value. The findings of the study emphasize the importance of integrating ESGC factors into market value prediction models. Moreover, our findings suggest that the importance of corporate sustainability performance factors (E, S, G, C) is more pronounced in Europe and America compared to other regions. This study may provide insights for companies, investors, and analysts to achieve a more sophisticated assessment of market value.