Corporate governance, its measurable effects on the financial markets and an application

Whether the investors are ready to accept a good governance standard as an essential safety measure for their future investments, and willing to pay a premium for it? The working paper surveys for how the good governance perceived or construed and treated by the markets in Turkey and all over the globe, based on the quantitative and qualitative consequences of it. Context of the paper attempts to outline the conceptual framework of the Corporate Governance, and establish a referable source for the topic, by all relevant disciplines. Developments are evaluated those have been achieved in corporate governance in Turkey; and the structure of the ISE-CGI (ISE Corporate Governance Index) have been examined, which is the fifth in the world. The return performance of the ISE-CGI of Turkey, which is constructed by the Turkish firms those have been evaluated as satisfactory executers of corporate governance principles by the independent evaluation firms, has been compared against the other basic three indices of ISE; and the signs and magnitudes of the relationships between the indices have been analyzed.