Özet:

Purpose- Since globalization movements in the capital markets change the information requirements expected from the financial statements to a great extent today, companies tend to provide more reliable, transparent and quality financial and non-financial information within the framework of corporate transparency. These trends also affect the financial reporting processes especially financial disclosures. The purpose of this study is to evaluate disclosures that are essential to an investor’s understanding and analysis of the economics underlying the information in financial reports. Methodology- It focuses on relationship between financial transparency and key financial ratios. In order to reach this aim financial transparency and disclosure checklist is established and companies are classified according to their transparency levels. Using a sample of publicly traded companies from BIST 100 (excluding finance sector) for the year 2016, Standard & Poor’s (S&P) methodology is applied for assessment of financial transparency and disclosure (T&D) levels based on their annual reports and websites. Findings- The results reveal that transparency level has statistical differences among the group means of some key financial ratios. High quality disclosure also means more accountable and transparent companies for investors.    Conclusion- The study also evaluates the relationship between the firm-specific T&D scores and financial performance of BIST 100 firms.  This paper sufficiently contributes towards literature on financial disclosures. High quality disclosure has significant influence on investors and lenders who must assess risks and returns and decide where to place their money best, strengthen the efficiency of capital allocation as well as offer the benefit of reducing the costs of capital.

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