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Journals / Finans Politik ve Ekonomik Yorumlar Dergisi / 2012 / Cilt: 49 - Sayı: 569

Investigating the relationship between corporate governance practices and firm value: Evidence from ISE

Kurumsal yönetim uygulamaları ve firma değeri ilişkisinin araştırılması: İMKB üzerine bir uygulama

Halil Cenk SÜER
Derindere.Sinem KÖSEOĞLU
Pages
101–122
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Among those control variables Leverage has indicated statistically significant relationship with P/BV.

📌 3 Key Takeaways

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Objective & Hypothesis:Main objective of this study is to evaluate the effect of corporate governance practices on firm value and performance of the companies in Istanbul Stock Exchange (ISE).
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Key Findings & Data:For this purpose, for the companies included in this study, a corporate governance index has been developed, according to what extent they comply with the best practices of corporate governance; and through this way, the relationship between corporate governance index (CGI) and firm value was examined.
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Conclusion & Impact:Among those control variables Leverage has indicated statistically significant relationship with P/BV.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

Main objective of this study is to evaluate the effect of corporate governance practices on firm value and performance of the companies in Istanbul Stock Exchange (ISE). For this purpose, for the companies included in this study, a corporate governance index has been developed, according to what extent they comply with the best practices of corporate governance; and through this way, the relationship between corporate governance index (CGI) and firm value was examined. Two proxies of firm value were used; the first one is Price/Book Value (P/BV) and the second one is Tobin's Q (TQ) ratio. The CGI and TQ showed a relation that is positive but statistically weakly significant, however, between CGI and P/BV there was also positive but statistically insignificant relationship. Besides, in order to mitigate the endogeneity factor, control variables, Company Size, Return on Assets and Leverage have been inserted into the model that relates corporate governance and firm value. Among those control variables Leverage has indicated statistically significant relationship with P/BV.

Özet

Bu araştırmanın temel amacı İMKB'deki şirketlerin kurumsal yönetim uygulamalarının firma değeri ve firma performansı üzerindeki etkilerinin değerlendirilmesidir. Bu amaç doğrultusunda çalışmaya dahil edilen şirketlerin kurumsal yönetim ilkelerini firmalarında ne dereceye kadar uyguladıklarına ilişkin sonuçlara dayanılarak bir kurumsal yönetim endeksi oluşturulmuş ve bu suretle elde edilen firma kurumsal yönetim endeksi (KYE) ile firma değeri arasındaki ilişki sorgulanmıştır. Şirket değerinin temsilcilerinden birisi olarak Fiyat/Defter Değeri (F/DD) oranı ikinci olarak ise Tobin's Q (TQ) oranı alınmıştır. Oluşturulan KYE ile TQ ile beklendiği gibi pozitif fakat istatistiksel olarak zayıf anlamlılık, F/DD ile yine pozitif fakat istatistiksel olarak anlamlı olmayan ilişkiler bulunmuştur. Ayrıca Kurumsal yönetim ile firma değerini ilişkilendiren modele içselliğin etkisini giderebilmek adına şirket büyüklüğü, aktif getiri oranı ve kaldıraç kontrol değişkenleri olarak eklenmiştir. Bu kontrol değişkenlerinden kaldıracın firmaların F/DD oranı üzerinde anlamlı bir ilişkisi olduğu saptanmıştır.

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Cite This Article

SÜER, H. C., KÖSEOĞLU, D. (2012). Investigating the relationship between corporate governance practices and firm value: Evidence from ISE. Finans Politik ve Ekonomik Yorumlar Dergisi, Cilt: 49 - Sayı: 569, 101–122. https://ajindex.com/articles/224025

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