Corporate governance and financial performance of selected quoted companies in Turkey

Abstract

The effect of corporate governance on business output is unevitable. It is possible to maximize coordination and performance by evaluating the connection between corporate governance and business output correctly. In corporate governance, fairness, reliability, accountability, objectivity and transparency are required to stand out. The primary purpose of this work is to reveal the connection between corporate governance and business output. This is to enable to make a healthier assessment by revealing the positive and negative aspects of the relationship and to provide solutions to the problems that may arise when necessary. It examines corporate governance variables and analyses if they affect on firm performance as measured by return on presence (ROA) and return on equity (ROE). According to the review of literature, we select four corporate governance variables. These are; board members, CEO and chairman, board structure and ownership concentration which assisted as the independent variables and the dependent variable is firm performance. The linear multiple regression was used to assess the connection between corporate governance and firm performance. In this article data for 179 manufacturing firms from ISE are collected from 2018 in order to determine how is the relation between corparate governance and business performance. As a result of the analyzes, it is reach that there is positive and meaningful relation between board members, board structure, ownership concentration and firm performance. But findings from the study show that there is no meaningful relationship between CEO chairman and firm performance.