Özet:

The impact of CEO duality on financial performance has become one of the basic and most controversial areas of corporate governance. The main aim of this study is to examine empirically whether CEO duality affects financial performance of the firm at Istanbul Stock Exchange. To see thatit has been investigated the data of 183 firms that are listed at ISE (Istanbul Stock Exchange). Three variables are used as financial performance indicators. Two variables are accounting based financial ratios (Return on Assets – ROA and Return on Equity – ROE), while the last one is market oriented (Tobin’s-Q). Regression, correlation and t-test analyses are applied to data of above mentioned ISE firms for 2006 – 2007 years. It has been observed that when the CEO is the Chairman of the Board at the same time, financial performance of the firm is inversely affected and consistent with agency theory.

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