The Effect of Corporate Governance Practices on Firm Value: Evidence from Turkey

This study analyzes the relationship between corporate governance variables and the firm value in Turkey for selected Turkey based publicly trading companies. The study covers 78 firms that are listed in the Borsa Istanbul Stock Exchange for the period of 2013-2016. A number of male and female independent members of the board of directors, committee members responsible for the audit and members of the corporate governance committee were used as independent variables in this study. Tobin’s Q, which is widely used in literature, ROA and ROE were used as dependent variables. As a result of this study, it was found that there is no significant relationship between corporate governance variables and dependent variables, except for a relationship between corporate governance variables and ROA at a 10 % significance level. The supporting evidence for the results of this study are as follows: Turkey’s capital markets are not at the desired level of depth, the total market capitalization of public companies over GDP ratio is quite low in Turkey compared to other developed countries, and most firms pay little attention and low compliance to corporate governance principles