Capital markets and corporate governance

With the increase in globalization due to technological developments, the fund flows have also increased in international field. The safeness of increased fund exchanges depends on the efficiency and proper functioning of the capital market, therefore the corporate governance practice is needed to secure the reliability and efficiency of the capital market. In this regard, the corporate governance practice aims to ensure that companies achieve their goals in accordance with the law and ethical values. That the corporate governance is becoming prevalent in companies, states and hence in the world contributes to the improvement of market and economics. The corporate governance began to become prevalent in the 1990s and the economical crises and financial scandals of major companies demonstrated the necessity of the concept of corporate governance. In 1999, OECD (Organization for Economic Co-operation and Development) corporate governance principles were accepted which were thought to be adopted all over the world with an aim to create a set of legal and regulatory standards worldwide to ensure that the companies and countries act in line with these standards. In Turkey, in 2003, the Capital Market Board (CMB) published the corporate governance principles which were evaluated under the titles: "Shareholders", "Public disclosure and Transparency", "Stakeholders" and "Board of Management". With the developments in regional and global scale, the Turkish Commercial Code (TCC) No.6102 has entered into force in 2012, instead of the Turkish Commercial Code (TCC) No.6762 which was in effect since 1956. The purpose of this study is to investigate the importance and influence of the corporate governance on capital markets and joint-stock companies. Keywords: Capital Markets, Corporate Governance, Corporate Governance Principles, Joint-Stock Company, Corporate Governance in Joint-Stock Companies