CORPORATE GOVERNANCE IN TURKEY: ISSUES AND PRACTICES OF HIGH-PERFORMANCE COMPANIES
Vol. 11, Nr. 4/2012 , p510..531
Author(s):
Belverd E. NEEDLES, Jr. Ahmet TÜREL Evren Dilek SENGUR Asli TUREL
Keywords:
Corporate Governance, High Performance Companies, Turkey
Abstract:
This
paper extends previous research, which investigated the relationship between
performance and corporate governance practices. This study examines the concept
of corporate governance in Turkey and compares compliance with good governance
norms by high performance companies (HPCs) and comparable, but lower performing
ordinary companies (ORD). It provides a background by explaining the problems of
corporate governance and also briefly explains the regulatory framework in
Turkey. The study is based on the published annual reports for the year 2010 of
60 ISE companies (30 HPCs and 30 ORDs).
The research question examined is:
Do companies that are demonstrably high performing companies in Turkey
also exhibit good corporate governance compared to their paired peers? The key governance parameters, as per Turkish
norms (Corporate Governance Principles of Turkey 2005), are selected on a 54-point
scale. The study finds that Turkish
companies generally, whether HPC (57.90 %) or ORD (50.68 %), score moderate measures
of corporate governance. However, we find that HPCs in Turkey score higher on
the norms of good corporate governance than comparable companies and the
differences are statistically significant. Overall, these results strongly support
the proposition that Turkish HPCs apply superior corporate governance practices
and succeed to confirm conclusions of earlier research on HPCs in other
economies. The paper concludes with limitations and outlining potential areas
of corporate governance practices for further research.
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