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dc.contributor.authorSoytaş, Mehmet Ali
dc.contributor.authorDenizel, M.
dc.contributor.authorUşar, Damla Durak
dc.date.accessioned2019-02-04T08:30:14Z
dc.date.available2019-02-04T08:30:14Z
dc.date.issued2019-01-14
dc.identifier.issn0925-5273en_US
dc.identifier.urihttp://hdl.handle.net/10679/6130
dc.identifier.urihttps://www.sciencedirect.com/science/article/pii/S0925527319300167?via%3Dihub
dc.descriptionDue to copyright restrictions, the access to the full text of this article is only available via subscription.
dc.description.abstractThe existing empirical literature on the relationship between corporate sustainability performance and corporate financial performance casts doubt on the direction of this relationship although more studies point out a direction from sustainability to performance. Literature also presents a gap in addressing the mechanism(s) of the relationship that hinders the convergence of the empirical findings and only recently the question of causality is being addressed with modern econometric techniques. We argue that due to the potential endogeneity problem in the relationship, an empirical strategy without a theoretical base may result in inconclusive or misleading conclusions. We address the potential endogeneity problem in the relationship and identify the possible causes of this endogeneity as: (i) firm level heterogeneity in financial returns, (ii) the relationship between firm's productivity level and the marginal cost of sustainability initiatives, and (iii) measurement error. We implement Instrumental Variable (IV) technique to overcome these biases. Our results present empirical evidence to support the hypothesis that corporate sustainability is positively related (possibly causally) with corporate financial performance. We further find that sustainability initiatives are more costly for companies that are more productive; thus, they have less incentive to invest. Finally, measurement error in the sustainability metrics does not play a crucial role.en_US
dc.description.sponsorshipNuclear Science and Technology Research Institute ; TÜBİTAK
dc.language.isoengen_US
dc.publisherElsevieren_US
dc.relation.ispartofInternational Journal of Production Economics
dc.rightsrestrictedAccess
dc.titleAddressing endogeneity in the causal relationship between sustainability and financial performanceen_US
dc.typeArticleen_US
dc.peerreviewedyesen_US
dc.publicationstatusPublished onlineen_US
dc.contributor.departmentÖzyeğin University
dc.contributor.authorID(ORCID 0000-0001-5839-6069 & YÖK ID 231352) Soytaş, Mehmet
dc.contributor.ozuauthorSoytaş, Mehmet Ali
dc.identifier.volume210en_US
dc.identifier.startpage56en_US
dc.identifier.endpage71en_US
dc.identifier.doi10.1016/j.ijpe.2019.01.016en_US
dc.subject.keywordsCorporate sustainabilityen_US
dc.subject.keywordsSustainable operationsen_US
dc.subject.keywordsCorporate financial performanceen_US
dc.subject.keywordsIV techniqueen_US
dc.subject.keywordsCSRHUB ratingsen_US
dc.identifier.scopusSCOPUS:2-s2.0-85060081531
dc.contributor.ozugradstudentUşar, Damla Durak
dc.contributor.authorMale1
dc.contributor.authorFemale1


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