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KURUMSAL YÖNETİMİN HİSSE YATIRIMCISINA YARATTIĞI DEĞER: GELİŞMEKTE OLAN PİYASADA BİR AMPRİK ÇALIŞMA

Year 2019, Volume: 6 Issue: 11, 109 - 125, 28.05.2019

Abstract

The aim of this study is to investigate the benefits provided by corporate governance to stock investors. For this purpose, companies which are included in the corporate governance and the dividend return indices have been examined. The data include BIST Corporate Governance Return, All Return and Dividend Return indices. Empirical analysis has been performed through OLS regression along with Beta calculations. The results of the study have shown that corporate governance has a positive impact on risk management and internal control constituents of companies. Corporate Governance Return index and All Return index decrease in parallel to each other when indices fall down (beta down). However, the decrease in the former index is less than the decrease in the latter one. Therefore, we argue that encouraging conformity to principles of corporate governance will generate benefit to shareholders and companies at micro level while also providing a more transparent investment environment and advancing the capital market. 

References

  • Adolf, A. B. and Means, G.C. (1932): The Modern Corporation and Private Property, The MacMillan Company, New York.
  • Arora, A and Bodhanwala, S. (2018): Relationship between Corporate Governance Index and Firm Performance: Indian Evidence, Global Business Review 19 (3), 675-689.
  • Chong, A. and López-de-Silanes F. (2007): Overview: Corporate Governance in Latin America. Investor Protection And Corporate Governance: Firm Level Evidence Across Latin America. The World Bank And The Inter-American Development Bank, Stanford University Press.
  • Hart, O. (1995). Corporate Governance: Some Theory And Implications. The Economic Journal 105(430), 678-689.
  • Koerniadi, H. Krishnamurti, C and Tourani-Rad, A. (2014): Corporate Governance And The Variability of Stock Returns, International Journal of Managerial Finance 10(4), 494-510.
  • Kugler, M.H. (2001): Corporate Governance and Economic Performance, Oxford University Press.
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., and Vishny, R. (2000): Investor Protection And Corporate Governance, Journal of Financial Economics 58(1), 3-27.
  • La Porta, R., Lopez-de-Silanes, F., Schleifer, A., and Vishny, R. W. (1997): Legal Determinants of External Finance, The Journal of Finance 52, 1131-1150.
  • Luigi Zingales. (1994): The Value of the Voting Right. A Study of The Milan Stock Exchange Experience, The Review of Financial Studies 7(1), 125-148.
  • Maranho, F.S. and Ricardo L. (2018): Corporate Governance And Firm Performance in Latin America: a Meta-Analysis, Academia Revista Latinoamericana de Administración 31(1), 195-211.
  • McConnell, J. J., and Servaes, H. (1990): Additional Evidence on Equity Ownership And Corporate Value, Journal of Financial Economics 27(2), pp. 595-612.
  • Monsen. R. J.. Chiu. J. S. and Cooley. D. E. (1968): The Effect of Separation of Ownership And Control on The Performance of The Large Firm, The Quarterly Journal of Economics. 435-451.
  • Ocal, H. (2005). Ortaklık Yapısı Ve Kar Dağıtım Politikası Bakımından Kurumsal Yönetim (Yayınlanmış Doktora Tezi), Marmara Üniversitesi Sosyal Bilimler Enstitüsü, İstanbul.
  • OECD (2010). Corporate Governance and the Financial Crisis – Conclusions and Emerging Good Practices to Enhance Implementation of the Principle, www.oecd.org/daf/ca/corporategovernanceprinciples/44679170.pdf.
  • Saha, NK, Moutushi, RH and Salauddin, M. (2018): Corporate Governance And Firm Performance: The Role of The Board And Audit Committee, Asian Journal of Finance & Accounting, 10 (1), 210-225.
  • Shank, T., Hill, RP and Stang, J. (2013): Do Investors Benefit From Good Corporate Governance?, Corporate Governance: The International Journal of Business in Society 13(4), 384-396.
  • Short, H. (1994): Ownership, Control, Financial Structure And Performance of Firms, Journal of Economic Surveys 8(3), 203 – 249.
  • Wamba, L.D., Braune, E. and Hikkerova, L. (2018): Does Shareholder-Oriented Corporate Governance Reduce Firm Risk? Evidence From Listed European Companies,
  • Journal of Applied Accounting Research, 19(2), 295-311.
  • Yurtoglu, B. (2000): Ownership, Control And Performance of Turkish Listed Firms, Empirica 27(2), 193-222.
  • Yurtoğlu, B. (2001): Turkey in Gugler K.(eds). Corporate Governance and Economic Performance. Oxford University Press.
  • Zingales, L. (1994): The Value of The Voting Right: A Study of The Milan Stock Exchange Experience, The Review of Financial Studies 7(1), 125-148.

VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET

Year 2019, Volume: 6 Issue: 11, 109 - 125, 28.05.2019

Abstract

 

The aim of this study is to investigate the benefits provided by corporate governance to stock investors. For this purpose, companies which are included in the corporate governance and the dividend return indices have been examined. The data include BIST Corporate Governance Return, All Return and Dividend Return indices. Empirical analysis has been performed through OLS regression along with Beta calculations. The results of the study have shown that corporate governance has a positive impact on risk management and internal control constituents of companies. Corporate Governance Return index and All Return index decrease in parallel to each other when indices fall down (beta down). However, the decrease in the former index is less than the decrease in the latter one. Therefore, we argue that encouraging conformity to principles of corporate governance will generate benefit to shareholders and companies at micro level while also providing a more transparent investment environment and advancing the capital market.

References

  • Adolf, A. B. and Means, G.C. (1932): The Modern Corporation and Private Property, The MacMillan Company, New York.
  • Arora, A and Bodhanwala, S. (2018): Relationship between Corporate Governance Index and Firm Performance: Indian Evidence, Global Business Review 19 (3), 675-689.
  • Chong, A. and López-de-Silanes F. (2007): Overview: Corporate Governance in Latin America. Investor Protection And Corporate Governance: Firm Level Evidence Across Latin America. The World Bank And The Inter-American Development Bank, Stanford University Press.
  • Hart, O. (1995). Corporate Governance: Some Theory And Implications. The Economic Journal 105(430), 678-689.
  • Koerniadi, H. Krishnamurti, C and Tourani-Rad, A. (2014): Corporate Governance And The Variability of Stock Returns, International Journal of Managerial Finance 10(4), 494-510.
  • Kugler, M.H. (2001): Corporate Governance and Economic Performance, Oxford University Press.
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., and Vishny, R. (2000): Investor Protection And Corporate Governance, Journal of Financial Economics 58(1), 3-27.
  • La Porta, R., Lopez-de-Silanes, F., Schleifer, A., and Vishny, R. W. (1997): Legal Determinants of External Finance, The Journal of Finance 52, 1131-1150.
  • Luigi Zingales. (1994): The Value of the Voting Right. A Study of The Milan Stock Exchange Experience, The Review of Financial Studies 7(1), 125-148.
  • Maranho, F.S. and Ricardo L. (2018): Corporate Governance And Firm Performance in Latin America: a Meta-Analysis, Academia Revista Latinoamericana de Administración 31(1), 195-211.
  • McConnell, J. J., and Servaes, H. (1990): Additional Evidence on Equity Ownership And Corporate Value, Journal of Financial Economics 27(2), pp. 595-612.
  • Monsen. R. J.. Chiu. J. S. and Cooley. D. E. (1968): The Effect of Separation of Ownership And Control on The Performance of The Large Firm, The Quarterly Journal of Economics. 435-451.
  • Ocal, H. (2005). Ortaklık Yapısı Ve Kar Dağıtım Politikası Bakımından Kurumsal Yönetim (Yayınlanmış Doktora Tezi), Marmara Üniversitesi Sosyal Bilimler Enstitüsü, İstanbul.
  • OECD (2010). Corporate Governance and the Financial Crisis – Conclusions and Emerging Good Practices to Enhance Implementation of the Principle, www.oecd.org/daf/ca/corporategovernanceprinciples/44679170.pdf.
  • Saha, NK, Moutushi, RH and Salauddin, M. (2018): Corporate Governance And Firm Performance: The Role of The Board And Audit Committee, Asian Journal of Finance & Accounting, 10 (1), 210-225.
  • Shank, T., Hill, RP and Stang, J. (2013): Do Investors Benefit From Good Corporate Governance?, Corporate Governance: The International Journal of Business in Society 13(4), 384-396.
  • Short, H. (1994): Ownership, Control, Financial Structure And Performance of Firms, Journal of Economic Surveys 8(3), 203 – 249.
  • Wamba, L.D., Braune, E. and Hikkerova, L. (2018): Does Shareholder-Oriented Corporate Governance Reduce Firm Risk? Evidence From Listed European Companies,
  • Journal of Applied Accounting Research, 19(2), 295-311.
  • Yurtoglu, B. (2000): Ownership, Control And Performance of Turkish Listed Firms, Empirica 27(2), 193-222.
  • Yurtoğlu, B. (2001): Turkey in Gugler K.(eds). Corporate Governance and Economic Performance. Oxford University Press.
  • Zingales, L. (1994): The Value of The Voting Right: A Study of The Milan Stock Exchange Experience, The Review of Financial Studies 7(1), 125-148.
There are 22 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Hüseyin Öcal 0000-0002-2614-8199

Mike Onder Kaymaz This is me 0000-0001-9875-537X

Publication Date May 28, 2019
Submission Date March 27, 2019
Published in Issue Year 2019 Volume: 6 Issue: 11

Cite

APA Öcal, H., & Kaymaz, M. O. (2019). VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET. Akademik Hassasiyetler, 6(11), 109-125.
AMA Öcal H, Kaymaz MO. VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET. Akademik Hassasiyetler. May 2019;6(11):109-125.
Chicago Öcal, Hüseyin, and Mike Onder Kaymaz. “VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET”. Akademik Hassasiyetler 6, no. 11 (May 2019): 109-25.
EndNote Öcal H, Kaymaz MO (May 1, 2019) VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET. Akademik Hassasiyetler 6 11 109–125.
IEEE H. Öcal and M. O. Kaymaz, “VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET”, Akademik Hassasiyetler, vol. 6, no. 11, pp. 109–125, 2019.
ISNAD Öcal, Hüseyin - Kaymaz, Mike Onder. “VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET”. Akademik Hassasiyetler 6/11 (May 2019), 109-125.
JAMA Öcal H, Kaymaz MO. VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET. Akademik Hassasiyetler. 2019;6:109–125.
MLA Öcal, Hüseyin and Mike Onder Kaymaz. “VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET”. Akademik Hassasiyetler, vol. 6, no. 11, 2019, pp. 109-25.
Vancouver Öcal H, Kaymaz MO. VALUE RELEVANCE OF CORPORATE GOVERNANCE TO STOCK INVESTORS: EMPIRICAL EVIDENCE FROM AN EMERGING MARKET. Akademik Hassasiyetler. 2019;6(11):109-25.

MAKALE DEĞERLENDİRME SÜRECİ

Yazar tarafından gönderilen bir makale, gönderim tarihinden itibaren 10 gün içinde dergi sekreteri tarafından makalenin, telif sözleşmesinin ve benzerlik raporunun (Turnitin programı) eksiksiz ve düzgün bir şekilde gönderilip gönderilmediği yönünden incelenir. İstenilen bu dosyalar eksiksiz ve düzgün bir şekilde gönderilmiş ise makale; ikinci aşamada derginin yayın çizgisine uygun olup olmadığı yönünden değerlendirilir. Bu süreçte makale yayın çizgisine uygun değilse yazara iade edilir. Makale yayın çizgisine uygun ise şablona uygun bir şekilde gönderilip gönderilmediği yönünden değerlendirilir. Şayet makale şablona uyarlanıp gönderilmemiş ise değerlendirme sürecine alınmaz. Bu süreçte yazarın derginin belirlediği şartlara uygun bir şekilde sisteme makale yüklemesi beklenir. Makale şablona uygun bir şekilde hazırlanıp gönderilmiş ise son aşamada makale derginin yayın ilkeleri, yazım kuralları, öz, abstract, extented abstract, kaynakça gösterimi vb. yönlerden incelenir. Bu ayrıntılarda makalede bir sorun varsa yazarın bu hususları tamamlaması istenir ve verilen süre içerisinde eksiksiz bir şekilde yeniden makaleyi göndermesi istenir.
Tüm bu aşamaları geçen makale, editör tarafından bilimsel yeterliliğinin denetlenmesi amacıyla ikinci 7 günlük süre içerisinde çalışmaya uygun iki hakeme değerlendirmeleri için gönderilir. Hakemlerin değerlendirme süreleri 15 gündür. Bu süre zarfında hakemlik görevini tamamlamayan bir hakem olursa ilgili hakeme değerlendirmeyi tamamlaması için 7 günlük ek süre verilebilir. Bu süre zarfında hakem görevini yerine getirmezse yerine yeni bir hakem ataması yapılır. En az iki hakemden gelen raporlar olumlu ise makale yayın aşamasına alınır. Hakem raporlarından birisi olumlu diğeri olumsuz ise makale üçüncü bir hakeme gönderilir. Üçüncü hakem raporu da olumsuz ise makale ret edilir. Üçüncü hakemin değerlendirmesi olumlu ise makaleyle ilgili hakem raporları dergi alan editörlerinden oluşan Editörler Kurulu tarafından incelenir. Makalenin yayınlanmasıyla ilgili nihai karar alan editörlerinden oluşan Editörler Kurulu tarafından verilir. Hakem raporlarının yetersiz ve tatmin etmekten uzak olması veya İngilizce editör tarafından abstract ve extented abstract’ın yetersiz görülmesi hallerinde de yine makaleyle ilgili son karar Editörler Kurulu tarafından verilir. Tüm bu aşamalardan geçen bir makale en yakın sayıya yayınlanmak üzere eklenir. İlgili sayıda yer kalmaması halinde makalenin yayımı bir sonraki sayıya kaydırılır. Bu durumda ve tüm değerlendirme sürecinde yazar isterse makalesini geri çekme hakkına sahiptir. Ancak bu durumu dergiye bildirmesi gerekir. Makale gönderim tarihinden makalenin yayına kabul tarihine kadar tüm bu işlemler için ortalama 3 aylık bir süre öngörülmektedir.