Exploring the Impact of Sustainability, Board Characteristics, and Firm-Specifics on Firm Value: A Comparative Study of the United Kingdom and Turkey

Faozi A. Almaqtari, Tamer Elsheikh, Omar Ikbal Tawfik, Mayada Abd El Aziz Youssef

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

The study aims to investigate the effect of several sustainability indicators on firms’ value. Panel data of 1914 observations from the UK and Turkey from 2016 to 2021 with a fixed effect model are used to estimate the results. The findings reveal that ESG indicators associate significantly with firms’ value. However, ESG indicators exhibit a stronger significant association with Tobin’s Q than stock prices and market-to-book value. This indicates that sustainability indicators are linked to the firm’s overall market value and the long-term run market valuation rather than just the stock market value. The results also reveal that while board independence, board expertise, and diversity exhibit a significant and positive association with firms’ value, board size negatively affects firms’ value. The current study provides unique contributions and comprehensive evidence based on different institutional and country sustainability enforcement statuses. It offers empirical implications for regulatory authorities and other developing countries to provide a comprehensive ESG reporting framework.

Original languageEnglish
Article number16395
JournalSustainability (Switzerland)
Volume14
Issue number24
DOIs
Publication statusPublished - Dec 2022

Keywords

  • environmental expenses
  • environmental team
  • ESG
  • ESG controversies
  • sustainability incentives
  • UK and Turkey

ASJC Scopus subject areas

  • Computer Science (miscellaneous)
  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Environmental Science (miscellaneous)
  • Energy Engineering and Power Technology
  • Hardware and Architecture
  • Computer Networks and Communications
  • Management, Monitoring, Policy and Law

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