The relationship between corporate governance practices and financial performance: A research in the BIST - banking sector

The purpose of this research is to determine the effect of corporate governance practices on the performance of a bank. As research material, the data of 11 banks that were traded in Borsa Istanbul A.Ş. between 2010 and 2020 were used. As corporate governance indicators, the size of the board of directors, the ratio of independent board members, the ratio of female board members, the ratio of foreign board members, the ratio of supervisory board members, the ratio of the largest shareholder, the ratio of the largest three shareholders, the free float ratio and the CEO Binary ratios are used. In terms of financial performance indicator, return on assets, return on equity and Tobin q ratios are used. In the research, panel data method was used for econometric measurement through IBM supported, 64-bit processor Eviews 9.0 program. The analysis performed has indicated a negative and significant relation between foreign board ratio and return on assets and return on equity. Within the scope of the research, the relationship between the corporate governance practices active in the Turkish Banking system and their performance was examined. For this purpose, the data obtained from the activity reports of 11 banks in the Turkish banking system between the years 2010-2020 were used. Within the scope of the analysis, panel data analysis was used to determine the relationships between the variables in question. As a result of the analysis, it was determined that there is a significant relationship between the variable representing the size of the board of directors and the average return on assets.