Abstract:

After the financial crises and corporate scandals the importance of corporate governance practices have begun to be realized better around the World. Like the 2008 financial crisis that affected the international markets financial, the lack of transparency applications may adversely affect the financial stability and integrity. The principles of transparency and disclosure that located on focus of Corporate Governance Principles published by OECD and other international organizations, were established by companies to form the standards for the disclosure policy of shareholders and all other stakeholders. Both potential investors and all other stakeholders are expected to be informed about the company's objectives, management structures, policies and practices, objectives and expectations for the future in the scope of these principles. In recent years, when the investors assess the firms, in the scope of company’s investor relations, they have taken transparency and public disclosure practices into account besides to financial performance.  Due to this reason, the transparency level of the firm, can affect the cost of capital and thus firm value and performance. In this study, a literature research have been conducted that examined the impact of corporate governance practices on the performance and value of firms. It can be seen in these studies that results varies based on the scopes, methods, and indexes used for corporate governance.

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