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Journals / Ekonomi Politika ve Finans Araştırmaları Dergisi / 2026 / Cilt: 10 Sayı: Özel Sayı Özel Sayı

The Impact of ESG Controversies on the Market Value in the Energy Sector

Özlem Sayılır(ANADOLU ÜNİVERSİTESİ)0000-0001-9598-3545
Muhammed Aslam Chelery Komath(ANADOLU UNIVERSITY)0000-0002-5991-7476
İbrahim Karaaslan(GÜMÜŞHANE ÜNİVERSİTESİ)0000-0001-9259-4587
Pages
305–317
Publication Date
2025-10-31
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Yet, no statistically significant relationship was detected between market value and environmental controversies (CE), or market value and social controversies.

📌 3 Key Takeaways

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Objective & Hypothesis:The energy sector has relatively higher exposure to controversial publicity due to the nature of industry operations.
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Key Findings & Data:We investigate the relationship between ESG controversies and the market value of 393 firms in 2018-2022 using Dynamic Panel Data Regression Models.
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Conclusion & Impact:Yet, no statistically significant relationship was detected between market value and environmental controversies (CE), or market value and social controversies.
🔬Design:Modeling & Simulation
📍Scope:2018-2022 Verileri
⚙️Variables:Environmental Controversies · Social Controversies · Governance Controversies

Abstract

The energy sector has relatively higher exposure to controversial publicity due to the nature of industry operations. For this reason, this study focuses on the energy sector and aims to evaluate the impact of ESG controversies scores (Environmental Controversies, Social Controversies and Governance Controversies) of LSEG (former Refinitiv EIKON) database on market value of firms. We investigate the relationship between ESG controversies and the market value of 393 firms in 2018-2022 using Dynamic Panel Data Regression Models. The findings of the study, carried out with system GMM, reveal that the market value of firms in the previous period has had a statistically significant positive effect on the market value of firms in the current period. There is a positive and statistically significant relationship between market value and governance controversies. Yet, no statistically significant relationship was detected between market value and environmental controversies (CE), or market value and social controversies.

Özet

The energy sector has relatively higher exposure to controversial publicity due to the nature of industry operations. For this reason, this study focuses on the energy sector and aims to evaluate the impact of ESG controversies scores (Environmental Controversies, Social Controversies and Governance Controversies) of LSEG (former Refinitiv EIKON) database on market value of firms. We investigate the relationship between ESG controversies and the market value of 393 firms in 2018-2022 using Dynamic Panel Data Regression Models. The findings of the study, carried out with system GMM, reveal that the market value of firms in the previous period has had a statistically significant positive effect on the market value of firms in the current period. There is a positive and statistically significant relationship between market value and governance controversies. Yet, no statistically significant relationship was detected between market value and environmental controversies (CE), or market value and social controversies.

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Cite This Article

Sayılır, Ö., Komath, M. A. C., Karaaslan, İ. (2025). The Impact of ESG Controversies on the Market Value in the Energy Sector. Ekonomi Politika ve Finans Araştırmaları Dergisi, Cilt: 10 Sayı: Özel Sayı Özel Sayı, 305–317. https://doi.org/10.30784/epfad.1697801

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