Abstract:

This research aims to determine the effect of corporate governance practices on the financial performance of banks. As research material, the data of 11 banks that were continuously traded in Borsa Istanbul A.Ş. between 2010-2020 were used. The corporate governance indicators used are the size of the board of directors, the ratio of independent members of the board of directors, the ratio of female board members, the ratio of foreign directors, the ratio of supervisory board members, the ratio of the largest shareholder, the share of the largest three shareholders, the free float ratio and the CEO Binary ratios. Return on assets, return on equity and Tobin q ratios were used as financial performance indicators. In the research, panel data method was used for econometric measurement with IBM supported and 64-bit processor Eviews 9.0 program. As a result of the analysis, a negative and significant relationship was determined between the ratio of foreign board members and return on assets and return on equity. Again, within the scope of the analysis results, it was determined that there was no significant relationship between the variable representing the size of the board of directors and the average return on assets.