The relationship between corporate sustainability performance and financial performance during the Covid-19 pandemic period

This study examines the effect of corporate sustainability performances of companies on their financial performance during the Covid-19 pandemic-induced crisis periods. As a sample, 77 non-financial companies listed in the Borsa Istanbul 100 index were selected. Being included in the Borsa Istanbul Sustainability Index (BIST SI) was evaluated as a corporate sustainability performance indicator. For the 2014-2021 period, the stock market returns, total risks, and systematic risks (Beta) of the companies were calculated by using stock market closing prices. Moreover, using year-end financial statement data, return on assets, return on equity, and return on sales were calculated and all these parameters were used as financial performance indicators. The analysis was implemented in two steps. In the first step, analysis was made for the 2018-2021 period via statistical tests. In the second step, the panel data analysis was used for the 2014-2021 period. The analysis results showed that for the pre-crisis period (2018-2019), in terms of systematic risks and total risks there was a statistically significant difference between the companies that are in BIST SI and those that are not. For the crisis period (2020-2021), there were statistically significant differences for return on sales and systematic risks of companies. The panel data analysis also showed that the sustainability performance in the Covid-19 period reduced the total risks of the companies. In summary, the research findings concluded that during the Covid-19 pandemic period the corporate sustainability performance has no effect on financial performance of companies.