WHAT GOOD CORPORATE GOVERNANCE PRACTICES CAN TURKEY LEARN FROM THE UK?

Abstract

Globalization has led to an increase in opportunities to make foreign investments. However, some developing countries, such as Turkey, cannot fully benefit from foreign investment. One of the reasons for this is ineffective application of corporate governance. In fact, Turkey can learn a lot from the good practices of developed countries. For instance, the UK has a well established corporate governance framework. First of all, Turkey needs to follow the UK’s example in respect of rule making and law enforcement. As a result, principles and the implementations of principles in Turkey would be more efficient. The principal aim of the paper is to discuss the corporate governance implementation in Turkey and offer some recommendations for improvement. The problems of Turkish Corporate Governance occur because of the ownership structure of Turkish companies, which is mainly family ownership. These problems will be discussed in this paper. Later UK arrangements will be examined and later the following conclusions will be drawn; revising the codes is not done regularly enough in Turkey which inhibits the revision of its codes. Moreover law enforcement is not effective. Besides, ownership structure is not suitable for corporate governance.

Keywords

• Corporate Goverance, Turkey, the UK

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