Exploring Integrated Dynamics Between Market Performances, Financial Performances and ESG Performances of Businesses in Tourism Indices

Abstract

The integration of ESG (Environmental, Social and Corporate Governance) principles contributes to a sustainable and inclusive development in the tourism sector, which focuses on nature and human factors. Nevertheless, the development of financial and market performance is also critical for the economic sustainability of tourism businesses. Therefore, this study aimed to determine the interaction dynamics between the financial, market and ESG performances of the companies included in the tourism indices. For this, the financial performances determined by Altman Z” score, market performances calculated with M/B and EV/EBITDA ratios and ESG performances obtained from the Datastream and calculated using the LSEG methodology of the companies included in the XTRZM and DJUSTT indices were analyzed by Correlation and Simple Linear Regression methods. As a result of the analysis, it has been determined that every work carried out for ESG principles will positively affect both the financial and market performances of businesses in the long term, and these interactions will mutually reflect on each other.