Abstract:

The purpose of this study is to reveal the impact of financial performance on sustainability performance. Data from the years 2018 and 2020, belonging to the facilities registered in Istanbul Stock Exchange and operating in manufacturing industry, have been used for this purpose. In the study, the dependent variable was sustainability performance while the independent variable was financial performance and the control variables were company size, asset turnover rate and leverage ratio. Sustainability performance was measured by sustainability scores obtained through the TOPSIS method. Financial performance, on the other hand, was represented by the return on assets ratio and the price/earnings ratio. The data collected were subjected to the panel data regression analysis. According to the results of the analysis, there was no statistically significant correlation between financial performance and sustainability performance, whereas sustainability performance was found to be positively and significantly correlated with company size. It can be said that business size has a positive impact on sustainability performance.

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