Abstract:

In this study, the effect of corporate governance practice on stock returns is examined. The research was analyzed within the framework of public disclosure and transparency, shareholder, stakeholders and board of directors, which has both corporate subheadings and corporate governance total score. The study was analyzed by using Panel Vector Autoregressive (PVAR) model for 2009-2016 periods. According to the results, corporate governance practice in Turkey is not effective in buying stocks of investors. The corporate governance of the companies is reflected negatively in the long term returns. Investor profile in Turkey is not interested in how the company is generally managed, investors are more care about short-term returns. It is thought that the corporate governance of firms should be introduced more in order to become a long-term preference for the investor.

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