Browsing by Author "Bilyay-Erdogan, Seda"

Now showing 1 - 7 of 7

Citation - WoS: 16
Citation - Scopus: 17
Corporate Esg Engagement and Information Asymmetry: the Moderating Role of Country-Level Institutional Differences
(Routledge Journals, Taylor & Francis Ltd, 2022) Bilyay-Erdogan, Seda; Erdoğan, Seda
The purpose of this study is to examine: (i) the impact of corporate environmental, social, and governance (ESG) performance on asymmetric information and (ii) whether this relationship differs for countries with different legal and governance systems. Employing an extensive sample (covering 21 countries from Europe) for an extended time frame (2002-2019), we present evidence that overall corporate ESG performance reduces information asymmetry. Moreover, environmental, social, and governance pillars separately contribute to this significant relationship. Within the ten subcategories of the ESG score, only the emissions, workforce, human rights, product responsibility, and management scores significantly and negatively affect asymmetric information. We also present novel evidence that the inverse relationship between corporate ESG performance and information asymmetry is more pronounced in civil law and stakeholder-oriented countries, but not in common law and shareholder-oriented countries. Our findings demonstrate that firms' country-level institutional context moderates the association between ESG performance and information asymmetry.
Citation - Scopus: 0
Economic Uncertainty and Climate Change Exposure
(Academic Press Ltd- Elsevier Science Ltd, 2025) Danisman, Gamze Ozturk; Bilyay-Erdogan, Seda; Demir, Ender
This paper explores how economic uncertainty affects firms' climate change exposure. We use an extensive sample from 24 countries from 2002 to 2021. Employing a novel measure of firm-level climate change exposure developed by Sautner et al. (2023b), we empirically demonstrate that prior to the Paris Agreement in 2015, economic uncertainty leads to a decrease in climate change disclosures. However, after the Paris Agreement, our findings reveal a positive association between economic uncertainty and climate change exposure. The positive disclosure effect is primarily driven by higher climate-related opportunities and regulatory exposures. Our findings are robust when we employ alternative definitions for economic uncertainty, alternative samples, additional firm-level and country-level control variables, and alternative methodologies. We find that institutional and foreign ownership positively moderates the association between economic uncertainty and climate change exposure after the Paris Agreement. Further analysis investigates the moderating impact of country-level environmental performance indicators. We present novel empirical evidence suggesting that firms operating in countries with less climate vulnerability, higher readiness, more stringent environmental policies, superior climate protection performance, and higher environmental litigation risk tend to have higher climate change exposure in uncertain times.
Citation - WoS: 35
Citation - Scopus: 38
Esg Performance and Dividend Payout: a Channel Analysis
(Academic Press Inc Elsevier Science, 2023) Bilyay-Erdogan, Seda; Erdoğan, Seda; Danisman, Gamze Ozturk; Öztürk Danışman, Gamze; Demir, Ender
This paper investigates the impact of environmental, social, and governance (ESG) performance on corporate dividend policy. We employ a panel data set comprised of 1094 non-financial listed firms in 21 European countries from 2002 to 2019. We show that companies with higher ESG performance are likely to pay higher dividends. Our results are robust to alternative variable definitions and specifications and address endogeneity concerns. We next investigate the possible transmission channels through which corporate ESG performance enhances dividend payouts. We present novel evidence that earnings and risk are the two possible channels through which ESG performance augments corporate dividends.
Citation - WoS: 44
Citation - Scopus: 43
ESG performance and investment efficiency: The impact of information asymmetry
(Elsevier, 2024) Erdoğan, Seda; Öztürk Danışman, Gamze; Demir, Ender
This paper investigates the relationship between firms' engagement in environmental, social, and governance (ESG) activities and corporate investment efficiency, using 1,094 firms from 21 countries in Europe, covering the years 2002-2019. We conduct our estimations using fixed effects panel data techniques and address potential endogeneity with instrumental variables (IV) estimations. We provide evidence that overall ESG engagement is positively and significantly associated with investment efficiency. Analyzing overinvestment and underinvestment scenarios shows that ESG engagement decreases only overinvestment problems. Within the underinvestment scenario, we observe that ESG engagement is beneficial only for firms with higher information asymmetries. Thus, information asymmetry matters in the underinvestment case. We next show that four firm-level channels-information asymmetry, financial constraints, cash flows, and risk-link ESG performance to investment inefficiency. Additional analysis shows that firms with extreme ESG scores (i.e., very low and very high) do not experience significant reductions in investment inefficiency. Altogether, our findings draw attention to the critical role of ESG performance and information asymmetry in determining corporate investment efficiency.
Citation - WoS: 0
Internationalization of SMES: Do Board Characteristics Matter?
(Economic and Financial Research Assoc - Efad, 2023) Erdoğan, Seda; Acar, Merve Gizem Cevheroglu; Birgoren, Irem Ozkan
All around the globe, SMEs constitute the backbones of the countries' economies, with their contribution to a very high level of employment and enterprises, as well as GDP creation. Despite their significance in their economies, SMEs' engagement in export activities is limited, which could be enhanced with better corporate governance initiatives. The purpose of this study is to examine the association between one of the main components of corporate governance, i.e., Aboard of directors (BOD), and SME internationalization. We apply stratified sampling by city, size, and sector to fairly reflect the SME population in Turkey, collecting data from 469 SMEs. To quantify the board characteristics, we construct aAboard index, composed of seven board-related variables. Then, we estimate cross-sectional regressions including firm-specific control variables and legal and industry dummies. Our findings show that the board index is strongly and positively associated with SME internationalization, implying SMEs can reach higher internationalization levels by fostering aAmore attentive approach toward the composition and functioning of their BODs. By focusing on the individual board characteristics, SMEs are likely to enhance their BODs' monitoring and controlling functions in addition to their resource-acquiring functions, ultimately leading to higher internationalization levels.
A New Piece in the Puzzle: Corruption and Financial Constraints-Evidence From European Firms
(Wiley, 2025) Garcia-Gomez, Conrado Diego; Bilyay-Erdogan, Seda; Demir, Ender; Diez-Esteban, Jose Maria
This study explores how country-level corruption affects firm-level financial constraints. We use a sample of 21 European countries from 2002 to 2022 comprising 22,974 firm-year observations. We find that corruption increases financial constraints. In other words, as countries become more transparent, firms face fewer financial constraints. Our findings are robust when we employ alternative definitions of corruption, financial constraints, alternative subsamples, additional firm-level control variables, and different econometric methodologies. As a further analysis, we provide novel evidence that an increase in country-level transparency decreases financial constraints only for firms with lower information asymmetry, higher institutional ownership, or higher foreign ownership. Finally, this effect is stronger for firms with lower ESG performance and firms without bribery corruption or fraud controversies. Our paper contributes to the literature by employing country-level corruption indices as a macroeconomic determinant of firm-level financial constraints for firms in developed countries and by investigating how different firm-level factors moderate the association between country-level corruption and firm-level financial constraints.
Citation - WoS: 5
Citation - Scopus: 4
The Role of Environmental, Social, Governance (ESG) Practices and Ownership on Firm Performance in Emerging Markets
(Routledge Journals, Taylor & Francis Ltd, 2023) Erdoğan, Seda; Öztürkkal, Ayşe Belma
This paper investigates: (i) the effect of environmental, social, and governance (ESG) engagement and ownership attributes on firm performance and (ii) whether different ownership attributes (institutional, foreign, and state ownership) moderate the association between ESG engagement and firm performance. Employing an extensive sample from 22 emerging countries worldwide, we provide cross-country evidence that ESG engagement and its three pillars, i.e. environmental, social, and governance pillars, enhance firm performance, proxied with ROA and Tobin's Q. Moreover, institutional and foreign ownership positively impact firm performance. We present novel evidence that the positive impact of superior ESG engagement on firm performance is lower for higher institutional ownership companies than lower institutional ownership companies, but greater for higher foreign ownership companies than lower foreign ownership companies.