Browsing by Author "Balci, Nehir"

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Designing Governance for ESG: Incentive and Oversight Complementarities in Corporate Sustainability Performance
(Wiley, 2026-03-31) Balci, Nehir; Gürel, Beyza; Okur, Mustafa Reha
This study investigates how internal governance design supports credible ESG performance by distinguishing between Incentive and Oversight Architectures. Using 13,993 firm-year observations of US nonfinancial firms from 2018 to 2024, we estimate fixed effects and two-step system GMM models. Results indicate sustainability-linked incentives, CSR committees, committee independence, and board gender diversity are positively associated with ESG performance, whereas CEO duality is negatively related. Pillar-level analyses show governance scores reflect structural compliance, while environmental and social scores depend on combined incentives and resource-rich oversight. Industry analyses validate incentives and independence as consistent drivers. Carbon intensity moderates the relationship between committee independence and ESG performance. Restricted stock units specifically improve ESG outcomes. Overall, stronger sustainability outcomes are more likely when Incentive and Oversight Architectures operate as a bundle. Credible ESG performance requires aligning incentive structures with independent oversight, offering insights for policymakers seeking to foster substantive sustainability.
Turning Profit into Sustainability: Evidence on Artificial Intelligence, Education, and Ecological Footprint
(Wiley, 2025-11-25) Balci, Nehir; Gurel, Beyza; Okur, Mustafa Reha
This paper examines how profit relates to ecological footprint intensity and how the link is shaped by artificial intelligence capability and education quality. We analyze 53,081 firm year observations from 15 innovation-leading economies during 2003-2022 using system GMM. The findings reveal that (i) profitability is associated with lower footprint intensity (ii) artificial intelligence capability is associated with higher footprint intensity and weakens the footprint-reducing effect of profitability, while education quality is associated with lower intensity and strengthens that channel, (iii) the joint effect of profitability, AI capability, and education quality increases footprint intensity. The findings speak to responsible production and climate action agendas. The study findings indicate that the interactions between profitability, artificial intelligence capability, and education quality have a multi-layered structure in terms of environmental sustainability. In line with sustainable development goals, recommendations focus on subjecting artificial intelligence investments to mandatory environmental impact assessments, and aligning education systems with sustainable production and environmental responsibility awareness.