The effect of corporate governance practices on the performance of private pension companies

The corporate management system includes the persons responsible for the management of the enterprise; are the rules that regulate the relationships between the members of the board of directors, the shareholders and the other stakeholders of the business. As a result of recent company bankruptcies and financial failures caused by scandals, the importance of corporate governance for the performance of companies has been understood. Therefore, it is expected that companies will engage in more successful activities by adopting corporate governance practices and, accordingly, show a higher financial performance. The aim of this study; The aim is to determine the level of corporate governance practices of the private pension companies included in the list of Pension Monitoring Center and to determine whether there is a significant relationship between the financial performances of the existing corporate management systems. Return on assets, return on equity and net profit for the period were used to measure their performance. For this purpose, the data in the annual reports of the private pension companies in the Pension Monitoring Center covering the period of 2011-2020 were included in the analysis using the panel data regression analysis method. The findings obtained as a result of the analysis showed that there is no statistically significant relationship between the existing corporate governance practices of private pension companies and their equity and return on assets. On the other hand, it has been determined that there is a statistically positive and significant relationship between only the independence rate of the board of directors and the net profit of the companies, representing corporate governance. This result reached in the study shows that the increase in the rate of independent members in the board of directors may lead to positive developments in the net profit of the private pension companies. Keywords: Corporate governance, Private pension companies, Financial performance, Panel data regression analysis.