Investigation of the relationship between corporate governance practices and financial performance in banks: A research in Borsa Istanbul

The aim of this study is to investigate the relationship between corporate governance practices and financial performance of banks traded in Borsa Istanbul. In this research, the data of 12 banks traded on the BIST between 2016 and 2020 were collected and turned into statistical information. Return on assets was used as the dependent variable. As the independent variable; the size of the board of directors, the ratio of female members of the board of directors, the ratio of independent members of the board of directors, the free float ratio and the graduate education level of the board members were used. As control variables, logarithm of total asset size, capital adequacy ratio and follow-up loan ratio were used. In order to examine and test the data of the banks, the Hausman Test was performed and it was decided to use the Fixed Effects model. As a result of the analysis, a positive and significant relationship was found between the return on assets ratio and the ratio of female members in the board of directors and the natural logarithm of total assets. It was observed that there was no significant relationship between the return on assets ratio and other independent and control variables used in the research. Keywords: Corporate governance banks, banking sector, corporate governance