Interaction of corporate governance index values and financial ratios of companies in İstanbul exchange market

As a result of the examinations on the financial performance of the enterprises carried out with the the understanding of corporate governance, the necessity of evaluating both performance indicators emerge together. In this study, investigate the interaction between the corporate governance ratings of 20 firms operating in BİST XKURY Istanbul Exchange between 2013-2018 and 10 financial ratio values obtained from their financial statements. The interaction between the corporate index values and financial ratios of the companies that make up the sample of the research has been tried to be revealed through the analysis of TOPSİS method, panel data and Fixed Effects, Random-effects GLS in STATA. As a result, in TOPSIS analysis method not found general relationship between the corporate governance and financial performance score. In some years, the corporate governance performance rating increased but financial performance rating decreased or vice versa. One of the panel data analysis unit root tests of the score obtained with TOPSIS; correlations between them were examined by Levin-Lin-Chu, Im-Pesaran-Shin, Hadri LM test unit root tests. In the low data set, the obtained score data were analyzed with the Fixed Effects model and the Random Effects model. 5% was not significant in both models. Therefore, the relationship between corporate governance rating and 10 financial ratios has been examined. And both models are significant at the 5% level. And decided between Random Effects model and Fixed Effects model whit Husmans test. Coincidental Effects model results are valid and Cash Rate (P> Z) = 0.000 and 5% meaningful and this theoretical management is an important ratio in the explanation. The coefficient value of the cash ratio is 0.0552 and the Acid Test Rate (P> Z) = 0.032 and 5%. Acid Test Ratio has a coefficient of -0.28461. Other financial ratios P> Z values are greater than 0.05 and not significant at 5% level.