Evaluation of the financial performance of companies in the corporate governance index

Corporate governance regulates the relationships between companies'governing bodies, managers, shareholders, and other stakeholders. It also focuses on transparency, accountability, fairness, and ethics. It provides a framework for companies to determine their objectives, develop appropriate strategies, and evaluate their performance. It enables companies to use resources effectively and efficiently and to act more fairly and transparently. It contributes to a decrease in companies'cost of capital and reduces investors'risk perception. Companies that adopt a corporate governance approach have easier access to financing sources. It enhances their reputation. Therefore, It is critical for companies. Corporate governance practices are expected to affect financial performance positively. To that end, this paper evaluates the financial performance of companies in the Borsa Istanbul Corporate Governance Index. This study focuses on the financial performance of 37 companies in the Corporate Governance Index for the period 2018-2022. Their financial statements were obtained from the Public Disclosure Platform. A model with ten variables was developed. The VIKOR method was used to analyze each year. The results showed that the best-performing companies varied from year to year.