Investigation of the relationship between corporate governance and financial distress

In today's World, company scandals and economic recessions cause a lot of companies to fail. Businesses which can cope with failure succeeds where the others end up in bankruptcy or liquidation. In order to avoid failure, companies need to take preventive actions regarding their management structure, capital management, audits committee and all other matters related to the business. The aim of this research is to analyse financial statements, annual raports and corporate governance reports of 69 businesses which have been in continuous operation between years of 2009 to 2015 and to use the data to determine whether there is a link between financial distress and corporate governance practices. As the companies used in this reasearch have variable financial statistics, logistic regression method has been used to analyse the data. Additionaly, Altman Z scores have also been used to predict potential financial distress. Model has been evaulated using SPSS program and a lot of positive and negative relevance have been identified between financial distress and corporate governance practices. KeyWords: Financial Distress, Corporate Governance, Altman Z Score, Logistic Regression, Borsa İstanbul