BibTex RIS Cite

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

Year 2015, Volume: 15 Issue: 2, 265 - 274, 01.05.2015

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

References

  • Amba, S.M., Corporate governance and firms’ fi- nancial performance. Journal of Academic and Business Ethics, (2012). www.aabri.com/manuscripts/131587.pdf
  • Arsoy, A. P., Arabacı Ö., Çiftçioğlu, A., Corporate Social Responsibility and Financial Performance Relationship: The Case Of Turkey. The Journal of Accounting and Finance, 159-176, (2012).
  • Bae, K.H., Baek J.S., Kang J.K., Liu W.L., Do con- trolling shareholders’ expropriation incentives imply a link between corporate governance and firm value? Theory and evidence. Journal of financial Economics. (105) 412 – 435, (2012).
  • Berthelot, S., Morris, T., Morrill, C., Corporate gov- ernance rating and financial performance: a Canadian study”, Corporate Governance: The international jour- nal of business in society, Vol. 10 Iss: 5, pp.635 – 646, (2010).
  • Black. B., Jang. H. and Kim. W., Does Corporate Governance Affect Firm Value? Evidence from Korea. Working Paper, (2003).
  • Brown,R., Treasury Working Paper, (2009). http://archive.treasury.gov.au/documents/1495/PDF/ TWP_2009-02.pdf
  • Brown, L. D., Caylor, M. L., Corporate governance and firm valuation. Journal of Accounting and Public Polic, (25) 409–434, (2006).
  • Cadbury Report http://www.jbs.cam.ac.uk/cadbury/ report/ (1992).
  • Coşkun. M., Sayılır, Ö., Relationship Between Corporate Governanceand Financial Performance of Turkish Companies International Journal of Business and Social Science, 3( 14), 59-64, (2012).
  • Ergin, E., Corporate Governance Ratings and Market-based Financial Performance: Evidence from Turkey. International Journal of Economics and Finance, 4 (9), 61-68, (2012).
  • Gürbüz, O., Kutlu, O. Aybars A., Corporate Governance and Financial Performance With a Perspective on Institutional Ownership: Empirical Evidence from Turkey. 6th International Strategic Management Conference, July 8-10, (2010).
  • Johnson, S., Boone, P., Breach, A., Friedman, E.,. Corporate Governance in the Asian Financial Crisis. Journal of Financial Economics (58), 141-186, (2000).
  • Kirkpatrick, G., and Jesover, F., The Revised OECD Principles of Corporate Governance and their Relevance to Non-OECD Countries. Corporate Governance: An International Review 13 (2), 127–136, (2005).
  • Kowalewski, O., Corporate Governance and Pension Fund Performance. Contemporary Economics, 6(1), 14- 44, (2012).
  • Kurumsal Yönetim İlkeleri, (2003), www.spk.gov.tr
  • Kurumsal Yönetim İlkelerinin Belirlenmesine ve Uygulanmasına İlişkin Tebliğ, Seri: IV, No: 56, 30/12/2011 tarihli ve 28158 sayılı Resmi Gazete, (2011).
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Corporate Ownership around the World. The Journal of Finance, 54 (2), 471-517, (1999).
  • La Porta, R., & Lopez-de-Silanes, F., Shleifer, A., Vishny, R.,Investor protection and corporate governance. Journal of Financial Economics, 58(1-2), 3-27, (2000).
  • Meydan C. H. ve Basım, H. N., “Kurumsal Yönetim- Şirket Performansı İlişkisi: Kuramsal Bir Analiz”, Kara Harp Okulu Savunma Bilimleri Dergisi, 6 (2), 48-67 (2007).
  • Mitton, T., A Cross-Firm Analysis of the Impact of Corporate Governance on the East Asian Financial Crisis Forthcoming. Journal of Financial Economics, (2002).
  • Ntim, C. G., An Integrated Corporate Governance Framework and Financial Performance in South African Listed Corporations. (2013). http://mpra.ub.uni- muenchen.de/45808/1/MPRA_paper_45808.pdf.
  • OECD Principles of Corporate Governance, (1999), http://www.oecd.org/.
  • OECD Principles of Corporate Governance, (2004), http://www.oecd.org/.
  • Oman, C. Fries, S. Buiter W., Corporate Governance in Developing, Transition and Emerging Market Economies,” OECD, (2003), http://www.oecd.org/.
  • Peterson, P., Financial Managemnt and Analysis, Florida: Mc Graw Hill, (1994).
  • Rajagopalan, N. and Zhang, Y. Corporate Governance Reforms in China and India: Challenges and opportuni- ties. Business Horizons, (51), 55-64 (2008).
  • Rajagopalan, N. and Zhang, Y. Recurring Corporate Governance Failures: A Global Diseases. Business Horizons,. (52), 545-552, (2009).
  • Robinson, T. R., Munter, P., Grant, J., Financial Statement Analysis. Pearson/ Prentice Hill, (2004).
  • Selvaggi, M and Upton, J. ,Governance and Performance in Corporate Britain: Evidence from the IVIS colour-rating system. ABI Research Paper 7, Report from ABI Research and Investment Affairs Department, (2008).
  • Shank, T., Ronald, P.H., Stang, J., Do investors benefit from good corporate governance?, Corporate Governance: The international journal of business in so- ciety, Vol. 13 Iss: 4, pp.384 – 396,(2013).
  • Shleifer, A., Vishny, R., A Survey of Corporate Governance. The Journal of Finance 52 (2), 737-783, (1997).
  • The HIH Royal Commission Report, (2003), www. hihroyalcom.gov.au.
  • Van Horne, J. C., Wachowicz, J. M., Fundamentals of Financial Management. New Jersey: Prentice Hall International Editions, (1995).
  • Wu, M.C., Lin, H.C., Lin, I.C., Lai, C.F., The Effects of Corporate Governance on Firm Performance. Working Paper, (2009). http://120.107.180.177/1832/9901/099- 2-06p.pdf
  • Wilkes, J., Corporate governance and measuring per- formance, Measuring Business Excellence, Vol. 8 Iss: 4, pp.13 - 16., (2004).
  • www.borsaistanbul.com www.kap.gov.tr www.tkyd.org.tr

Kurumsal Yönetim Düzeyinin Işletmelerin Finansal Performansı Üzerindeki Etkisi: Borsa İstanbul Kurumsal Yönetim Endeksi (XKURY) Üzerine Bir Araştırma

Year 2015, Volume: 15 Issue: 2, 265 - 274, 01.05.2015

Abstract

Bu çalışmanın amacı kurumsal yönetim uygulamalarının finansal performans üzerindeki etkilerini analiz etmektir. Bu amaçla 2006-2012 yılları arasında XKURY endeksinde bulunan şirketlerin kurumsal yönetim seviyeleri ile finansal performansları arasındaki ilişki panel veri analizi kullanılarak açıklanmaya çalışılmıştır. Çalışmada kullanılan finansal veriler, şirketlerin Kamuyu Aydınlatma Platformunda yayınlanan yıllık finansal raporlarından ve Türkiye Kurumsal Yönetim Derneği’nin internet sitesinden elde edilmiştir. Bulgular, kurumsal yönetim derecelendirme notu ile Tobin’s q oranı ve kaldıraç oranı arasında istatistikî olarak anlamlı ve pozitif yönlü bir ilişki bulunduğu göstermektedir. Diğer taraftan, özsermaye karlılığı, aktif karlılığı, satış karlılığı ve net kar ile kurumsal yönetim düzeyi arasında anlamlı bir ilişkiye rastlanmamıştır

References

  • Amba, S.M., Corporate governance and firms’ fi- nancial performance. Journal of Academic and Business Ethics, (2012). www.aabri.com/manuscripts/131587.pdf
  • Arsoy, A. P., Arabacı Ö., Çiftçioğlu, A., Corporate Social Responsibility and Financial Performance Relationship: The Case Of Turkey. The Journal of Accounting and Finance, 159-176, (2012).
  • Bae, K.H., Baek J.S., Kang J.K., Liu W.L., Do con- trolling shareholders’ expropriation incentives imply a link between corporate governance and firm value? Theory and evidence. Journal of financial Economics. (105) 412 – 435, (2012).
  • Berthelot, S., Morris, T., Morrill, C., Corporate gov- ernance rating and financial performance: a Canadian study”, Corporate Governance: The international jour- nal of business in society, Vol. 10 Iss: 5, pp.635 – 646, (2010).
  • Black. B., Jang. H. and Kim. W., Does Corporate Governance Affect Firm Value? Evidence from Korea. Working Paper, (2003).
  • Brown,R., Treasury Working Paper, (2009). http://archive.treasury.gov.au/documents/1495/PDF/ TWP_2009-02.pdf
  • Brown, L. D., Caylor, M. L., Corporate governance and firm valuation. Journal of Accounting and Public Polic, (25) 409–434, (2006).
  • Cadbury Report http://www.jbs.cam.ac.uk/cadbury/ report/ (1992).
  • Coşkun. M., Sayılır, Ö., Relationship Between Corporate Governanceand Financial Performance of Turkish Companies International Journal of Business and Social Science, 3( 14), 59-64, (2012).
  • Ergin, E., Corporate Governance Ratings and Market-based Financial Performance: Evidence from Turkey. International Journal of Economics and Finance, 4 (9), 61-68, (2012).
  • Gürbüz, O., Kutlu, O. Aybars A., Corporate Governance and Financial Performance With a Perspective on Institutional Ownership: Empirical Evidence from Turkey. 6th International Strategic Management Conference, July 8-10, (2010).
  • Johnson, S., Boone, P., Breach, A., Friedman, E.,. Corporate Governance in the Asian Financial Crisis. Journal of Financial Economics (58), 141-186, (2000).
  • Kirkpatrick, G., and Jesover, F., The Revised OECD Principles of Corporate Governance and their Relevance to Non-OECD Countries. Corporate Governance: An International Review 13 (2), 127–136, (2005).
  • Kowalewski, O., Corporate Governance and Pension Fund Performance. Contemporary Economics, 6(1), 14- 44, (2012).
  • Kurumsal Yönetim İlkeleri, (2003), www.spk.gov.tr
  • Kurumsal Yönetim İlkelerinin Belirlenmesine ve Uygulanmasına İlişkin Tebliğ, Seri: IV, No: 56, 30/12/2011 tarihli ve 28158 sayılı Resmi Gazete, (2011).
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Corporate Ownership around the World. The Journal of Finance, 54 (2), 471-517, (1999).
  • La Porta, R., & Lopez-de-Silanes, F., Shleifer, A., Vishny, R.,Investor protection and corporate governance. Journal of Financial Economics, 58(1-2), 3-27, (2000).
  • Meydan C. H. ve Basım, H. N., “Kurumsal Yönetim- Şirket Performansı İlişkisi: Kuramsal Bir Analiz”, Kara Harp Okulu Savunma Bilimleri Dergisi, 6 (2), 48-67 (2007).
  • Mitton, T., A Cross-Firm Analysis of the Impact of Corporate Governance on the East Asian Financial Crisis Forthcoming. Journal of Financial Economics, (2002).
  • Ntim, C. G., An Integrated Corporate Governance Framework and Financial Performance in South African Listed Corporations. (2013). http://mpra.ub.uni- muenchen.de/45808/1/MPRA_paper_45808.pdf.
  • OECD Principles of Corporate Governance, (1999), http://www.oecd.org/.
  • OECD Principles of Corporate Governance, (2004), http://www.oecd.org/.
  • Oman, C. Fries, S. Buiter W., Corporate Governance in Developing, Transition and Emerging Market Economies,” OECD, (2003), http://www.oecd.org/.
  • Peterson, P., Financial Managemnt and Analysis, Florida: Mc Graw Hill, (1994).
  • Rajagopalan, N. and Zhang, Y. Corporate Governance Reforms in China and India: Challenges and opportuni- ties. Business Horizons, (51), 55-64 (2008).
  • Rajagopalan, N. and Zhang, Y. Recurring Corporate Governance Failures: A Global Diseases. Business Horizons,. (52), 545-552, (2009).
  • Robinson, T. R., Munter, P., Grant, J., Financial Statement Analysis. Pearson/ Prentice Hill, (2004).
  • Selvaggi, M and Upton, J. ,Governance and Performance in Corporate Britain: Evidence from the IVIS colour-rating system. ABI Research Paper 7, Report from ABI Research and Investment Affairs Department, (2008).
  • Shank, T., Ronald, P.H., Stang, J., Do investors benefit from good corporate governance?, Corporate Governance: The international journal of business in so- ciety, Vol. 13 Iss: 4, pp.384 – 396,(2013).
  • Shleifer, A., Vishny, R., A Survey of Corporate Governance. The Journal of Finance 52 (2), 737-783, (1997).
  • The HIH Royal Commission Report, (2003), www. hihroyalcom.gov.au.
  • Van Horne, J. C., Wachowicz, J. M., Fundamentals of Financial Management. New Jersey: Prentice Hall International Editions, (1995).
  • Wu, M.C., Lin, H.C., Lin, I.C., Lai, C.F., The Effects of Corporate Governance on Firm Performance. Working Paper, (2009). http://120.107.180.177/1832/9901/099- 2-06p.pdf
  • Wilkes, J., Corporate governance and measuring per- formance, Measuring Business Excellence, Vol. 8 Iss: 4, pp.13 - 16., (2004).
  • www.borsaistanbul.com www.kap.gov.tr www.tkyd.org.tr
There are 36 citations in total.

Details

Other ID JA57ED84MZ
Journal Section Research Article
Authors

Esen Kara This is me

Duygu Acar Erdur This is me

Lale Karabıyık This is me

Publication Date May 1, 2015
Published in Issue Year 2015 Volume: 15 Issue: 2

Cite

APA Kara, E., Erdur, D. A., & Karabıyık, L. (2015). Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY). Ege Academic Review, 15(2), 265-274.
AMA Kara E, Erdur DA, Karabıyık L. Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY). ear. May 2015;15(2):265-274.
Chicago Kara, Esen, Duygu Acar Erdur, and Lale Karabıyık. “Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY)”. Ege Academic Review 15, no. 2 (May 2015): 265-74.
EndNote Kara E, Erdur DA, Karabıyık L (May 1, 2015) Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY). Ege Academic Review 15 2 265–274.
IEEE E. Kara, D. A. Erdur, and L. Karabıyık, “Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY)”, ear, vol. 15, no. 2, pp. 265–274, 2015.
ISNAD Kara, Esen et al. “Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY)”. Ege Academic Review 15/2 (May 2015), 265-274.
JAMA Kara E, Erdur DA, Karabıyık L. Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY). ear. 2015;15:265–274.
MLA Kara, Esen et al. “Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY)”. Ege Academic Review, vol. 15, no. 2, 2015, pp. 265-74.
Vancouver Kara E, Erdur DA, Karabıyık L. Effects Of Corporate Governance Level On The Financial Performance Of Companies: A Research On BIST Corporate Governance Index (XKURY). ear. 2015;15(2):265-74.