Relationship Between Corporate Governanceand Financial Performance of Turkish Companies
Associate Professor Dr. Metin COŞKUN, Assistant Professor Dr. Özlem SAYILIR

Abstract
We explore the relationship between firm value and corporate governance (CG) and also the relationship between profitability performance and corporate governance (CG) of Turkish companies. We employ corporate governance scores of 31 companies published by Corporate Governance Asssociation of Turkey as well as stock market data and financial statement data of the companies investigated. Regarding corporate governance and firm valuation, CG is not found to have a statistically significant relationship with Tobin’s Q. Regarding Corporate governance and profitability, CG is not found to have a statistically significant relationship with ROE or ROA. The findings of the study do not support the hypothesis that better corporate governance is associated with higher firm values and better performance.

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