Abstract:

The increasing importance of corporate management practices every day and the increasing requirement of these practices makes companies more reliable institutions. Although compliance with corporate management principles is mandatory in Turkey, measuring compliance with corporate management principles is not mandatory activity. This study examines the impact of some elements and performance standards associated with corporate management practices on the corporate management rating. The performance criteria are the profitability (ROE) and the market value/defter value ratio; the number of members of the audit committee and the number of independent members, the number of members of the corporate management committee and the number of independent members and the number of members of the early risk determination committee. The study was analyzed with the Tobit regression model. The work included companies that were continuously operating in BIST-100 between 2007 and 2013. According to the results of the analysis, there is no connection between the corporate management ratings and financial performance of the companies operating in Turkey. However, it has been determined that some characteristics of corporate management committees have a positive impact on the corporate management rating.

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