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Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY)

Author

Listed:
  • Esen KARA

    (The Kyrgyz-Russian Slavic University)

  • Duygu ACAR ERDUR

    (The Kyrgyz-Russian Slavic University)

  • Lale KARABIYIK

    (The Kyrgyz-Russian Slavic University)

Abstract

Purpose of the study is to analyze the effect of corporate governance on financial performance. For this purpose, the relationship between the financial performance and corporate governance level of companies listed on XKURY index in the period of 2006-2012 have examined using panel data analysis. Financial data used in the study is derived from annual financial reports published on Public Disclosure Platform web site and corporate governance rating scores are derived from Turkish Corporate Governance Association. Results show that; there is a statistically meaningful and positive relationship between corporate governance rating score and Tobin’s q value and also leverage ratio. On the other hand, results are showing that there is no meaningful relationship between corporate governance level and return on equity ratio, return on assets ratio, return on sales ratio and net profit.

Suggested Citation

  • Esen KARA & Duygu ACAR ERDUR & Lale KARABIYIK, 2015. "Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY)," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 15(2), pages 265-274.
    • Handle: RePEc:ege:journl:v:15:y:2015:i:2:p:265-274
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    References listed on IDEAS

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    Cited by:

    1. Işıl EREM, 2017. "The Relationship Between Corporate Governance Compliance Ratings And Financial Performance: An Investigation On Banks Listed In Borsa Istanbul Corporate Governance Index," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 6(1), pages 1-42, January.
    2. Komath, Muhammed Aslam Chelery & Doğan, Murat & Sayılır, Özlem, 2023. "Impact of corporate governance and related controversies on the market value of banks," Research in International Business and Finance, Elsevier, vol. 65(C).
    3. Selda Erdogan, 2017. "The Role of Corporate Governance in Financial Communication: AModel Recommendation for The Emerging Market," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(5), pages 13-27, July.
    4. Michel Sayumwe, 2019. "Corporate Governance: An Overview. From Creation of Value for Shareholders by the Board to the Duality Role of Its Chairperson," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 8(1), pages 40-51, April.
    5. Berna Doğan Başar & Ahmed Bouteska & Burak Büyükoğlu & İbrahim Halil Ekşi, 2021. "The effect of corporate governance on bank performance: evidence from Turkish and some MENA countries banks," Journal of Asset Management, Palgrave Macmillan, vol. 22(3), pages 153-162, May.

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