Investigation of financial performance indicators affecting corporate sustainability of participation banks

Participation banking in Turkey started its activities with the name "private financial institutions" in 1985. PFI which was included in the scope of the Banks Law in 1999, continued its activities under the name of Participation Banking in 2005. The fact that participation banks reach an audience beyond the economic actors with only interest sensitivity and gain a greater place in the current financial market will be determined by the competition with conventional banks. The competition of the participation banks with the conventional banks with a focus on profit is realized not only in the economic field but also in the social and environmental fields. Corporate sustainability is called the adaptation of economic, environmental, and social factors to company activities and decision-making mechanisms to create long-term and lasting value. Within the scope of this thesis, financial performance indicators that determine the corporate sustainability of participation banks were examined. For that purpose, covering the years 2015-2020, data of 30 banks/year of 5 participation banks operating in Turkey were analyzed. As a result of this analysis made with the Panel Data Method, the financial performance ratio that has the highest impact on the corporate sustainability of participation banks is the ratio of profit before tax to assets. Due to the statistically inverse relationship, as the ratio increases, the corporate sustainability practices of participation banks decrease. In addition, there is a statistically significant and positive relationship between the corporate sustainability of participation banks and their active resource profitability. In this study, a significant and positive relationship was determined between the size of participation banks, which is a control variable, and corporate sustainability.