The effects of corporatization through corporate compliance on companies' performances: A research on companies enlisted on corporate governance index

The effects of institutionalization on firm performance through corporate compliance have been examined, relationships between institutionalization titles and the company performance are discussed. The aim of the research is to first examine to what extent the effects of institutionalization on company performance actualized in companies that are in the corporate governance index. Forty-nine companies included in the BIST Corporate Governance index registered companies, one hundred companies in the main BIST 100 index, two hundred and fiftyseven companies in the BIST All Shares-100 that are identified as focused companies. %74 of the participants work in companies with two hundred and fifty employees or more, %79,2 do not have voting privileges in the company they work for, %97,9 minority rights are not extended in the company's articles of association, %86,5 are chairman of the board of directors and the chief executive officer/general manager are not the same. There is a positive correlation between a company performance and formalization. As a result of the analysis performed on the conceptual model, it is found out that institutionalization positively affects the performance of company and there is no mediation effect of corporate compliance. In the light of the findings, suggestions were made.