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The Impact of Carbon Emissions on Corporate Cost of Debt (COD): A Research on Borsa İstanbul (BIST) Sustainability Index

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  • Filiz ÖZŞAHİN-KOÇ
  • Ali DERAN

Abstract

This study examines the influence of carbon emissions of companies traded on the BIST Sustainability Index on the cost of debt for 2017-2021. In other words, the study aimsto guide decisionmakers towards carbon emissions reduction by showing a significant impact between the cost of debt and carbon emissions. The data were obtained from the Public Disclosure Platform, companies’ financial statements, annual reports, sustainability reports, integrated reports, and the DataStream database and were subjected to statistical analysis. Panel data pooled OLS method was used in the study. The study found a significant impact of total carbon emissions, carbon emission intensity, leverage, and structure variables on the cost of debt. However, it was concluded that the size, return on assets, growth, and cash flow variables did not significantly impact the cost of debt.

Suggested Citation

  • Filiz ÖZŞAHİN-KOÇ & Ali DERAN, 2024. "The Impact of Carbon Emissions on Corporate Cost of Debt (COD): A Research on Borsa İstanbul (BIST) Sustainability Index," Sosyoekonomi Journal, Sosyoekonomi Society, issue 32(60).
    • Handle: RePEc:sos:sosjrn:240202
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    References listed on IDEAS

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    More about this item

    Keywords

    Cost of Debt; Carbon Emissions; Sustainability; Panel Data Analysis.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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