Performance measurement in the scope of corporate governance and sustainability: An application in BIST 100 iIndex businesses

Corporate Governance is a concept that includes policies that balance the responsibilities and interests of stakeholders. The concept of sustainability, on the other hand, can be described as a consciousness movement that requires caution in the resources we use today, in order to ensure that the environmental structure, which has begun to move away from its natural balance, can provide ease of access to natural resources for future generations. Today, many businesses create their organizational structures by adopting institutionalization and sustainability cultures. In this context, BIST also includes Corporate Governance and Sustainability Indices. Businesses under BIST must meet certain criteria in order to be traded in these indices. The success of businesses that can provide these in corporate governance and sustainability practices also has an impact on their financial performance. In addition, the adoption of corporate governance and sustainability policies can provide businesses with various advantages in the sectors in which they operate. This study aims to determine the effects of the interaction of working capital management and corporate governance policies on the financial performance of the companies registered in the BIST Sustainability Index with the participation in the Sustainability Index created on November 4, 2014, based on the data set of BIST 100 Index companies. In addition, the financial performance of the companies traded in the Corporate Governance index with the companies traded in other indexes was compared in the study. Panel Data Analysis Technique was determined as the study method due to the suitability of the data set. Two dependent and four independent variables were used in performance measurement. Dependent variables as performance criteria; Asset Profitability and Adjusted Price Value are used. The independent variables to test the ability to affect the dependent variables were determined as Cash Turnover Rate, Current Ratio, Performance Ratios and Leverage Ratio. In the panel data analysis workflow, starting with the determination of the descriptive statistics of the data, the tests frequently used in the method were carried out. Then, the connections between the data and the connection problems, if any, were eliminated, and finally, the model equation was created. As a result of the study, it has been determined that the financial performances of the companies traded in the Sustainability Index and Corporate Governance Index are higher than the financial performances of the companies in the BIST 100 Index. However, a positive change could not be detected in the financial performance of the companies traded only in the Sustainability Index. Therefore, it has been determined that meeting the Corporate Governance Index criteria contributes positively to the financial performance of the enterprises.