The Impact of Tendency Towards Renewable Energy Sources on Company Profitability

The transition of companies to renewable energy is aimed at directly contributing to the reduction of global carbon emissions, as the use of fossil fuels is one of the main sources of greenhouse gas emissions. The problem of controlling energy input has paved the way for companies to turn to renewable energy sources, as it is one of the important cost elements in the production stage and plays an important role in terms of environmental impact. This issue has come to the forefront due to our country's high potential in terms of renewable energy resources. In this study, the effect of companies' shift towards renewable energy sources on their financial performance was examined by analyzing the relationship between the Profitability dependent variable and the independent variables of Cash, Leverage, Size, Growth, and TRE (Total Renewable Energy), based on information in reports published by 45 companies that have shifted towards renewable energy sources between 2012-2022. As a result of the analyses conducted in the research, it is observed that the variables of leverage, cash, growth, and size have a significant effect on profitability, while the TRE variable appears to have a negative effect on profitability.