Özet:

Purpose- Corporate Governance establishes valuable pillars in order to guard shareholders’ interests by the use of firm governance devices. It is evidently a philosophy rather than a palliative solution. However, while there is some evidence to prove that corporate governance enhances corporate performance and fraud detection; such hypotheses has not been tested within Borsa Istanbul. The aim of this paper is to make an attempt to investigate whether there is an association between corporate governance practices and detecting fraud. Methodology- A logistics regression model is constructed with non-financial data. The analysis contains categorical dependent data which needs a binary response model. 134 firms from manufacturing industry of Borsa Istanbul construct the data set. Findings- No evidence found about the impacts on selected corporate governance activities on the risk of financial statement frauds. Conclusion- Although it was assumed that corporate governance applications have an effect to lessen the manipulations on financials at the beginning of the study, test results are not sufficient to prove the relationship. Nevertheless, existence of such practices are good messages of companies about their attitudes toward fraud.

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