Green and financial performance index: A composite index to compare firm performance in the tourism sector

OpenAlex İngilizce

Environmental concerns have become increasingly crucial in the financial system. This study aims to develop a composite index, the Green and Financial Performance Index (GFPI), to measure the holistic impact of environmental and financial indicators on financial management and to evaluate the overall performance of firms. The efficacy of the developed index was tested in the tourism sector utilizing the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. The publicly available financial and sustainability reports of the Mandarin Oriental Hotel Group from 2014 to 2023 were examined to obtain the GFPI score for each year. The results revealed that 2015, 2016, and 2017 achieved the highest scores, while the years 2020, 2021, and 2023 recorded the lowest. Consisting of "green performance" and "financial performance" dimensions, the GFPI provides investors, financial managers, and researchers with a comprehensive performance measuring instrument to guide companies' financial decision-making processes.