The effect of corporate governance on financial failure and intellectual value of companies

Corporate governance is a system that regulates and modifies the relationship among all stakeholder groups interacting with a company. It ensures the successful operation of the company, the incorporation and respect of societal values, and enables stakeholders to collectively create economic value. Intellectual capital refers to the entirety of practices within a company that include its culture and cultural values, individual skills, hardware used for software, firm-customer relationships, and the supply chain. The transformation of all internal company knowledge into value can be defined as the firm's intellectual accumulation. This study evaluates the effects of corporate governance on firms' financial distress and intellectual capital. This research examines the impact of corporate governance practices on financial distress and intellectual capital in 31 companies listed on Borsa Istanbul between 2014 and 2024, using panel data analysis. The analysis results revealed that the effects of corporate governance on financial success and intellectual capital may vary across different models and dimensions.