Corporate governance in brokerage houses in Turkey: Review and recommendations

Corporate governance has become a management model that has emerged especially in response to large-scale corporate scandals and has been rapidly adopted by both civil circles and public authorities in recent years. This concept, which started to be applied in countries where scandals originally took place, after the increasing effects of failures on world economies, international organization such as the OECD and has begun to be discussed more over time by many countries including Turkey. The roles of financial intermediaries have been one of the most discussed issues in the recent global financial crisis. After the crisis, the practices of these institutions were discussed, and studies were conducted on the effects of corporate governance practices to improve both their management and financial performance. The aim of this study was operating in Turkey between the years 2011-2018 47 brokerage firms to analyze the relations with the corporate governance criteria such as the size of the board of directors, the number of women on the board of directors, CEO duality and ownership structure, and the performance criteria such as return of assets (ROA), return on equity (ROE) and gross, net and operating profit margins with panel data analysis. As a result of the study, only strong relationship between the ownership structure and brokerage performances were identified among the corporate governance variables, but the existence of a strong relationship could not be reached even though there were weak connections with the other variables. The fact that most brokerage houses do not have to implement corporate governance requirements is consider to be effective in this result.