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

Year 2012, Volume: 4 Issue: 2, 137 - 151, 01.12.2012

Irem Tore

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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