The Impacts of Corporate Disclosures Regarding Sustainable Development Goals and Environmental, Social, and Governance Scores of Companies on Financial Performance: The Case of Türkiye

The aim of this study is to examine the impact of corporate disclosures regarding Sustainable Development Goals and Environmental, Social, and Governance (ESG) scores on financial performance. The findings reveal a positive relationship between the overall ESG score and social score with Return on Equity and Net Profit Margin. There is a positive relationship between the Environmental score and Return on Equity. Additionally, a causal relationship exists between the Environmental score and Earnings Before Interest and Taxes, Net Profit Margin, and Price/Earnings ratio. The Governance score shows a positive relationship with Return on Assets, Return on Equity, Tobin's Q, and Earnings Before Interest and Taxes. Furthermore, a causal relationship exists between the Governance score and Return on Assets and Return on Equity. Conversely, the level of disclosure score regarding Sustainable Development Goals is negatively related to Net Profit Margin and Price/Earnings ratio, while a causal relationship is present with Return on Assets.