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OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY

Year 2014, , 349 - 364, 16.03.2015
https://doi.org/10.14780/iibd.62037

Abstract

This study investigates the relationship between corporate governance and company performance. I consider two measures of corporate governance during the period 2005–2011. Financial ratio, Return on Sales (ROS) was applied to measure organizational performance. A significant positive relationship between ownership structure and organizational performance and between executive structure and organizational performance was found. The data from businesses listed in Borsa Istanbul was used to understand the relation between corporate governance and organizational performance

References

  • AGRAWAL, A., and KNOEBER C.R., “Firm Performance And Mechanisms To Control Agency Problems Between Managers And Shareholders”, Journal of Financial and Quantitative Analysis, Vol.31, No.3, (1996), pp. 377-397.
  • AMIHUD, Y., and LEV, B., “Does Corporate Ownershıp Structure Affect Its Strategy Towards Diversificatıon?”, Strategic Management Journal 20, 1999, pp.1063-1069.
  • ARSLAN, O., KARAN, M.B., and EKSİ, C., “Board structure and corporate performance”, Managing Global Transitions, Vol:8. No.1, 2010, pp.3-22.
  • BARCA F., and BECHT, M., The Control of Corporate Europe, Londra: Oxford Basim, 2001.
  • BEKTAS, E., and KAYMAK T., “Governance Mechanisms and Ownership in an Emerging Market: The Case of Turkish Banks”, Emerging Markets Finance & Trade Vol. 45, No. 6, 2009, pp. 20–32.
  • BERLE A., and GARDENER M., The Modern Corporation and Private Property, New York;Harcourt, Brace, & World, 1932.
  • BHAGAT, S., and BOLTON, B., “Director ownership, governance, and performance”, Journal Of Financial And Quantitative Analysis, Vol:48, No.1, 2013, pp. 105–135.
  • BONGJIN, K., PRESCOTT, J.E., and KIM, S.M., “Differentiated Governance Of Foreign Subsidiariesin Transnational Corporations: An Agency Theory Perspective”, Journal Of International Management 11, 2005, pp. 43- 66.
  • COHEN A., and BARUCH Y., “An Agency Theory Perspective Of The Israeli Labor Market Segmentation: Past, Present, And Future”, Human Resource Management Review 20, 2010, pp.186-193.
  • CONSTANTINOS, M.C. and WILLIAMSON, P.J., “Related Diversification, Core Competences and Corporate Performance”, Strategic Management Journal, 15, 1994, pp.149-65.
  • ÇITAK, L., “The Impact of Ownership Structure on Company Performance; A Panel Data Analysis on Istanbul Stock Exchange Listed (ISE-100) Companies”, International Research Journal of Finance and Economics, Vol.9, 2007, pp. 231-245.
  • DEMSETZ H., and BELEN, V., “Ownership Structure And Corporate Performance”, Journal of Corporate Finance, 7, 2001, pp.209–233.
  • DEMSETZ H., and KENNETH L., “The Structure Of Corporate Ownership: Causes And Consequences”, Journal Of Political Economy, Vol.93, No. 6, 1985, pp.1155-1177.
  • DENIS D.J., DENIS D.K., and SARIN, A., “Agency Theory And The Influence Of Equity Ownership Structure On Corporate Diversification Strategies”, Strategic Management Journal 20, 1999, pp.1071-1076.
  • DICKINS, D., and HOUMES, R., “Revisiting the Relationship Between Insider Ownership and Performance”, Journal of Business & Economic Studies, Vol. 15, No. 2, 2009, pp.32-43.
  • DONALDSON, T. and PRESTON, L.E., “The Stakeholder Theory Of The Corporation: Concepts, Evidence, And Implications”, Academy Of Management Review Vol.20, No:1, 1995, pp.85-91.
  • DUCASSY I., and PREVOT, F., “The Effects Of Family Dynamics On Diversification Strategy: Empirical Evidence From French Companies”, Journal Of Family Business Strategy 1, 2010, pp. 224–235.
  • EDWARDS, J., NIBLER, M., “Corporate Governance In Germany: The Role Of Banks And Ownership Concentration”, Economic Policy, Vol. 15, No.31, 2000, pp.237–267.
  • EISENHARDT, K.M., “Agency Theory: An Assessment And Review”, Academy Of Management Review, Vol.14, No: 1, 1989, pp.S7-74.
  • EISENMANN, T.R. , “The Effects Of Ceo Equity Ownership And Firm Diversification On Risk Taking”, Strategic Management Journal 23, 2002, pp.513- 534.
  • EONSOO, K., NAM, Dae-il, and STIMPERT, J.L., “The Applicability of Porter’s Generic Strategies inthe Digital Age: Assumptions, Conjectures, and Suggestions”, Journal of Management ,Vol.30, No.5, 2004, pp.569–589.
  • EZZAMEL, M., and WATSON, R., “Organizational Form, Ownership Structure and Corporate Performance: A Contextual Empirical Analysis of UK Companies”, British Journal of Management, Vol.4, 1993, pp. 161-176.
  • FACCIO, M., and LANG, L.H.P., “The ultimate ownership of western European corporations”, Journal of Financial Economics, Vol.65, No.3, 2002, pp.365-395.
  • FIELD, A., Discovering Statistics Using SPSS, London:Sage Publications, Second Edition, 2005.
  • FIRTH, M., FUNG, P.M.Y, and RUI, O.M., “Ownership, governance mechanisms, and agency costs in China’s listed firms”, Journal Of Asset Management 9, 2008, pp.90–101.
  • FRANCIA, A.J., PORTER, M.C., and SOBNGWİ, C.K., “Ownershıp structure and financial performance in the trucking industry”, Academy Of Accounting And Financial Studies Journal, Vol:15, No.1, pp.9-22.
  • FUNG, S., and TSAI, Shih-Chuan, “Institutional ownership and corporate investment performance”, Canadian Journal of Administrative Sciences 29, 2012, pp. 348–365.
  • GORTON G., and SCHMID F., “Universal Banking And The Performance Of German Firms”, Journal Of Financial Economics, Vol.58, No.1, 2000, pp.29-80.
  • GURBUZ, A.O., AYBARS, A., KUTLU, Ö., “Corporate Governance and Financial Performance with a Perspective on Institutional Ownership:Empirical Evidence from Turkey”, JAMAR, Vol. 8, No. 2, 2010, pp.21-37.
  • HAID A., and YURTOGLU B.B., “Ownership Structure and Executive Compensation in Germany”, 2006, SSRN: http://ssrn.com/abstract=948926 or http://dx. doi.org/10.2139/ssrn.948926.
  • HIMMELBERG, C.P., HUBBARD, R.G., and PALIA, D., “Understanding the Determination Of Managerial Ownership and the Link Between Ownership and Performance”, Journal of Financial Economics, Vol. 53, 1999, pp.353– 384.
  • HUANG, W., and BOATENG, A., “The Role Of The State, Ownership Structure, And The Performance Of Real Estate Firms In China”, Applied Financial Economics, Vol. 23, No. 10, 2013, pp. 846-859.
  • JENSEN, M.C., and MECKLING, W.H., “Theory Of The Firm: Managerial Behaviour, Agency Costs And Ownership Structure”, Journal of Financial Economics 3, 1976, pp. 305-360.
  • KANG, Jun-Koo, and SHIVDASANI, A., “Firm Performance, Corporate Governance, And Top Executive Turnover In Japan”, Journal of Financial Economics, Vol. 38, (1995), pp.29-58.
  • KOÇEL, T., İşletmeYöneticiliği, İstanbul:.Arıkan Basım,10. Basım, 2005.
  • LOMBARDO, D., and MARCO, P., “Legal Determinants of the Return on Equity” Stanford Law and Economics Olin Working Paper, No. 193, 1999. pp.1- 51.
  • PALEPU, K., “Diversification Strategy, Profit Performance and the Entropy Measure”, Strategic Management Journal 6, 1985, pp.239-255.
  • PERVAN, M., PERVAN, I., and TODORIC, M., “Firm ownership and performance: evidence for Croatian listed firmsworld academy of science”, Engineering and Technology 61, 2012, pp.964-970.
  • PORTA, R.L., Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny, “Legal Determinants of External Finance, Journal of Finance”, American Finance Association, Vol.52, No.3, 1997, pp.1131-1150.
  • PORTA, R.L., Florencio Lopez-De-Silanes, and SHLEIFER, A., “Corporate Ownership Around The World”, Journal of Finance, 54, 1999, pp.471–517.
  • PORTA, R.L., Lopez de Silanes, Florencio and Shleifer, Andrei and Robert W Vishny, “Law and Finance”, Journal of Political Economy, Vol. 106, No.6, 1998, pp.1112-1155.
  • QUINN, D.P., and JONES, T.M., “An Agent Morality View Of Business Policy”, Academy Of Management Review, Vol. 20, No:1, 1995, pp. 22-42.
  • SHLEIFER, A., and VISHNY R.W., “A Survey Of Corporate Governance”, The Journal of Finance, 52, 1997, pp.737–83.
  • SHLEIFER, A., and VISHNY R.W., “Corruption”, The Quarterly Journal of Economics, Vol. 108, No.3, 1993, pp. 599-617.
  • SHLEIFER, A., “State versus private ownership”, Journal of Economic Perspectives, 12, 1998, pp.133–50.
  • THOMSEN, S., and PEDERSEN, T., “Ownership Structure And Economic Performance In The Largest European Companies”, Strategic Management Journal, Vol.21, No.6, 2000, pp.689-705.
  • WELCH, E., “The Relationship Between Ownership Structure and Performance in Listed Australian Companies”, Australian Journal of Management, Vol. 28, No. 3, 2003, pp. 287- 306.
  • WRIGHT, P., MUKHERJI, A., and KROLL, M.J., “A Reexamination Of Agency Theory Assumptions:Extensions And Extrapolations”, Journal of Socio-Economics 30, 2001, pp.413–429.
  • YABEI H., and IZUMIDA, S., “The Relationship Between Ownership And Performance: A Review Of Theory And Evidence”, International Business Research Vol. 1, No. 4, 2008, pp.72-81.
  • YISHAY, Y., YOSHA, O., “Large Shareholders And Banks:Who Monitors And How?”, The Economic Journal, 113, 2003, pp.128-46.
  • YURTOGLU, B.B., “Ownership, Control And Performance of Turkish Listed Firms”, Empirica 27, 2000, pp. 193-222.

SAHİPLİK YAPISI, YÖNETİM YAPISI VE FİRMA PERFORMANSI: TÜRKİYE’DEN BULGULAR

Year 2014, , 349 - 364, 16.03.2015
https://doi.org/10.14780/iibd.62037

Abstract

Bu çalışma şirket yönetişimi ve örgütsel performans arasındaki ilişkiyi anlamayı amaçlamaktadır. 2005-2005 yılları arasını kapsayan bu araştırmada şirket yönetişimi için iki ölçü düşünülmüştür. Örgütsel performans ölçütü olarak ROA ve ROS
değerleri kullanılmıştır. Sahiplik yapısı ile örgütsel performans arasında istatistiki
olarak anlamlı pozitif yönlü korelasyon tespit edilmiştir. Diğer taraftan yönetim yapısı
ile örgütsel performans arasında istatistiki olarak anlamlı farklılık tespit edilmiştir.
Araştırmada Borsa İstanbul verileri kullanılmıştır. 

References

  • AGRAWAL, A., and KNOEBER C.R., “Firm Performance And Mechanisms To Control Agency Problems Between Managers And Shareholders”, Journal of Financial and Quantitative Analysis, Vol.31, No.3, (1996), pp. 377-397.
  • AMIHUD, Y., and LEV, B., “Does Corporate Ownershıp Structure Affect Its Strategy Towards Diversificatıon?”, Strategic Management Journal 20, 1999, pp.1063-1069.
  • ARSLAN, O., KARAN, M.B., and EKSİ, C., “Board structure and corporate performance”, Managing Global Transitions, Vol:8. No.1, 2010, pp.3-22.
  • BARCA F., and BECHT, M., The Control of Corporate Europe, Londra: Oxford Basim, 2001.
  • BEKTAS, E., and KAYMAK T., “Governance Mechanisms and Ownership in an Emerging Market: The Case of Turkish Banks”, Emerging Markets Finance & Trade Vol. 45, No. 6, 2009, pp. 20–32.
  • BERLE A., and GARDENER M., The Modern Corporation and Private Property, New York;Harcourt, Brace, & World, 1932.
  • BHAGAT, S., and BOLTON, B., “Director ownership, governance, and performance”, Journal Of Financial And Quantitative Analysis, Vol:48, No.1, 2013, pp. 105–135.
  • BONGJIN, K., PRESCOTT, J.E., and KIM, S.M., “Differentiated Governance Of Foreign Subsidiariesin Transnational Corporations: An Agency Theory Perspective”, Journal Of International Management 11, 2005, pp. 43- 66.
  • COHEN A., and BARUCH Y., “An Agency Theory Perspective Of The Israeli Labor Market Segmentation: Past, Present, And Future”, Human Resource Management Review 20, 2010, pp.186-193.
  • CONSTANTINOS, M.C. and WILLIAMSON, P.J., “Related Diversification, Core Competences and Corporate Performance”, Strategic Management Journal, 15, 1994, pp.149-65.
  • ÇITAK, L., “The Impact of Ownership Structure on Company Performance; A Panel Data Analysis on Istanbul Stock Exchange Listed (ISE-100) Companies”, International Research Journal of Finance and Economics, Vol.9, 2007, pp. 231-245.
  • DEMSETZ H., and BELEN, V., “Ownership Structure And Corporate Performance”, Journal of Corporate Finance, 7, 2001, pp.209–233.
  • DEMSETZ H., and KENNETH L., “The Structure Of Corporate Ownership: Causes And Consequences”, Journal Of Political Economy, Vol.93, No. 6, 1985, pp.1155-1177.
  • DENIS D.J., DENIS D.K., and SARIN, A., “Agency Theory And The Influence Of Equity Ownership Structure On Corporate Diversification Strategies”, Strategic Management Journal 20, 1999, pp.1071-1076.
  • DICKINS, D., and HOUMES, R., “Revisiting the Relationship Between Insider Ownership and Performance”, Journal of Business & Economic Studies, Vol. 15, No. 2, 2009, pp.32-43.
  • DONALDSON, T. and PRESTON, L.E., “The Stakeholder Theory Of The Corporation: Concepts, Evidence, And Implications”, Academy Of Management Review Vol.20, No:1, 1995, pp.85-91.
  • DUCASSY I., and PREVOT, F., “The Effects Of Family Dynamics On Diversification Strategy: Empirical Evidence From French Companies”, Journal Of Family Business Strategy 1, 2010, pp. 224–235.
  • EDWARDS, J., NIBLER, M., “Corporate Governance In Germany: The Role Of Banks And Ownership Concentration”, Economic Policy, Vol. 15, No.31, 2000, pp.237–267.
  • EISENHARDT, K.M., “Agency Theory: An Assessment And Review”, Academy Of Management Review, Vol.14, No: 1, 1989, pp.S7-74.
  • EISENMANN, T.R. , “The Effects Of Ceo Equity Ownership And Firm Diversification On Risk Taking”, Strategic Management Journal 23, 2002, pp.513- 534.
  • EONSOO, K., NAM, Dae-il, and STIMPERT, J.L., “The Applicability of Porter’s Generic Strategies inthe Digital Age: Assumptions, Conjectures, and Suggestions”, Journal of Management ,Vol.30, No.5, 2004, pp.569–589.
  • EZZAMEL, M., and WATSON, R., “Organizational Form, Ownership Structure and Corporate Performance: A Contextual Empirical Analysis of UK Companies”, British Journal of Management, Vol.4, 1993, pp. 161-176.
  • FACCIO, M., and LANG, L.H.P., “The ultimate ownership of western European corporations”, Journal of Financial Economics, Vol.65, No.3, 2002, pp.365-395.
  • FIELD, A., Discovering Statistics Using SPSS, London:Sage Publications, Second Edition, 2005.
  • FIRTH, M., FUNG, P.M.Y, and RUI, O.M., “Ownership, governance mechanisms, and agency costs in China’s listed firms”, Journal Of Asset Management 9, 2008, pp.90–101.
  • FRANCIA, A.J., PORTER, M.C., and SOBNGWİ, C.K., “Ownershıp structure and financial performance in the trucking industry”, Academy Of Accounting And Financial Studies Journal, Vol:15, No.1, pp.9-22.
  • FUNG, S., and TSAI, Shih-Chuan, “Institutional ownership and corporate investment performance”, Canadian Journal of Administrative Sciences 29, 2012, pp. 348–365.
  • GORTON G., and SCHMID F., “Universal Banking And The Performance Of German Firms”, Journal Of Financial Economics, Vol.58, No.1, 2000, pp.29-80.
  • GURBUZ, A.O., AYBARS, A., KUTLU, Ö., “Corporate Governance and Financial Performance with a Perspective on Institutional Ownership:Empirical Evidence from Turkey”, JAMAR, Vol. 8, No. 2, 2010, pp.21-37.
  • HAID A., and YURTOGLU B.B., “Ownership Structure and Executive Compensation in Germany”, 2006, SSRN: http://ssrn.com/abstract=948926 or http://dx. doi.org/10.2139/ssrn.948926.
  • HIMMELBERG, C.P., HUBBARD, R.G., and PALIA, D., “Understanding the Determination Of Managerial Ownership and the Link Between Ownership and Performance”, Journal of Financial Economics, Vol. 53, 1999, pp.353– 384.
  • HUANG, W., and BOATENG, A., “The Role Of The State, Ownership Structure, And The Performance Of Real Estate Firms In China”, Applied Financial Economics, Vol. 23, No. 10, 2013, pp. 846-859.
  • JENSEN, M.C., and MECKLING, W.H., “Theory Of The Firm: Managerial Behaviour, Agency Costs And Ownership Structure”, Journal of Financial Economics 3, 1976, pp. 305-360.
  • KANG, Jun-Koo, and SHIVDASANI, A., “Firm Performance, Corporate Governance, And Top Executive Turnover In Japan”, Journal of Financial Economics, Vol. 38, (1995), pp.29-58.
  • KOÇEL, T., İşletmeYöneticiliği, İstanbul:.Arıkan Basım,10. Basım, 2005.
  • LOMBARDO, D., and MARCO, P., “Legal Determinants of the Return on Equity” Stanford Law and Economics Olin Working Paper, No. 193, 1999. pp.1- 51.
  • PALEPU, K., “Diversification Strategy, Profit Performance and the Entropy Measure”, Strategic Management Journal 6, 1985, pp.239-255.
  • PERVAN, M., PERVAN, I., and TODORIC, M., “Firm ownership and performance: evidence for Croatian listed firmsworld academy of science”, Engineering and Technology 61, 2012, pp.964-970.
  • PORTA, R.L., Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny, “Legal Determinants of External Finance, Journal of Finance”, American Finance Association, Vol.52, No.3, 1997, pp.1131-1150.
  • PORTA, R.L., Florencio Lopez-De-Silanes, and SHLEIFER, A., “Corporate Ownership Around The World”, Journal of Finance, 54, 1999, pp.471–517.
  • PORTA, R.L., Lopez de Silanes, Florencio and Shleifer, Andrei and Robert W Vishny, “Law and Finance”, Journal of Political Economy, Vol. 106, No.6, 1998, pp.1112-1155.
  • QUINN, D.P., and JONES, T.M., “An Agent Morality View Of Business Policy”, Academy Of Management Review, Vol. 20, No:1, 1995, pp. 22-42.
  • SHLEIFER, A., and VISHNY R.W., “A Survey Of Corporate Governance”, The Journal of Finance, 52, 1997, pp.737–83.
  • SHLEIFER, A., and VISHNY R.W., “Corruption”, The Quarterly Journal of Economics, Vol. 108, No.3, 1993, pp. 599-617.
  • SHLEIFER, A., “State versus private ownership”, Journal of Economic Perspectives, 12, 1998, pp.133–50.
  • THOMSEN, S., and PEDERSEN, T., “Ownership Structure And Economic Performance In The Largest European Companies”, Strategic Management Journal, Vol.21, No.6, 2000, pp.689-705.
  • WELCH, E., “The Relationship Between Ownership Structure and Performance in Listed Australian Companies”, Australian Journal of Management, Vol. 28, No. 3, 2003, pp. 287- 306.
  • WRIGHT, P., MUKHERJI, A., and KROLL, M.J., “A Reexamination Of Agency Theory Assumptions:Extensions And Extrapolations”, Journal of Socio-Economics 30, 2001, pp.413–429.
  • YABEI H., and IZUMIDA, S., “The Relationship Between Ownership And Performance: A Review Of Theory And Evidence”, International Business Research Vol. 1, No. 4, 2008, pp.72-81.
  • YISHAY, Y., YOSHA, O., “Large Shareholders And Banks:Who Monitors And How?”, The Economic Journal, 113, 2003, pp.128-46.
  • YURTOGLU, B.B., “Ownership, Control And Performance of Turkish Listed Firms”, Empirica 27, 2000, pp. 193-222.
There are 51 citations in total.

Details

Primary Language English
Journal Section Makaleler
Authors

İhsan Yiğit This is me

Publication Date March 16, 2015
Submission Date March 16, 2015
Published in Issue Year 2014

Cite

APA Yiğit, İ. (2015). OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 36(2), 349-364. https://doi.org/10.14780/iibd.62037
AMA Yiğit İ. OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. March 2015;36(2):349-364. doi:10.14780/iibd.62037
Chicago Yiğit, İhsan. “OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY”. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi 36, no. 2 (March 2015): 349-64. https://doi.org/10.14780/iibd.62037.
EndNote Yiğit İ (March 1, 2015) OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 36 2 349–364.
IEEE İ. Yiğit, “OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY”, Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, vol. 36, no. 2, pp. 349–364, 2015, doi: 10.14780/iibd.62037.
ISNAD Yiğit, İhsan. “OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 36/2 (March 2015), 349-364. https://doi.org/10.14780/iibd.62037.
JAMA Yiğit İ. OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2015;36:349–364.
MLA Yiğit, İhsan. “OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY”. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi, vol. 36, no. 2, 2015, pp. 349-64, doi:10.14780/iibd.62037.
Vancouver Yiğit İ. OWNERSHIP STRUCTURE, EXECUTIVE STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM TURKEY. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2015;36(2):349-64.