The effect of corporate governance practices on financial performance: An econometric analysis

This study aims to determine the effect of corporate governance practices on financial performance. In the first part of the study, corporate governance concept, theoretical and historical evolution of corporate governance, underlying reasons of evolution and importance of corporate governance concept and benefits of corporate governance practices are briefly discussed. The second part of the study discusses corporate governance systems in Turkey and in the world. In the third part of the study, a brief literature review on the effect of corporate governance practices on financial performance is given. In the last part of the study, the effect of corporate governance practices on financial performance is analyzed via a sample of BIST Corporate Governance Index listed. In the light of empirical findings, some recommendations about corporate governance practices are given. Keywords: Corporate Governance, Financial Performance, Liquidity Ratio, Borsa Istanbul Corporate Governance Index.