THE EFFECT OF CORPORATE GOVERNANCE PRACTICES ON PERFORMANCE OF INSURANCE COMPANIES

The view that one of the underlying reason for global crises and corporate scandals are mismanagement policies, has led firms to search for innovation in management mentality. The concept of corporate governance has emerged in this process and has found a wide range of application area by the companies. In this study, it is aimed to examine the effects of corporate governance approach on the firm performance by taking into consideration insurance companies traded in Borsa Istanbul (B？ST). For the purpose, the indicators of corporate governance determined by literature research and profitability ratios of insurance * Bu makale, 13-17 Aral？k 2017 tarihinde Erzurum’da düzenlenen 4.Uluslararas？ Muhasebe ve Finans Ara？t？rmalar？ Kongresinde sunulmu？ olan ？zet bildirinin geni？letilmi？ tam metnidir. a K？r？kkale üniversitesi, ？ktisadi ve ？dari Bilimler Fakültesi, ？？letme B？lümü, tdbaskan@gmail.com b Mersin üniversitesi, ？ktisadi ve ？dari Bilimler Fakültesi, ？？letme B？lümü, gcvardar@mersin.edu.tr Ampirik Ara？t？rma (Empirical Research) Muhasebe ve Vergi Uygulamalar？ Dergisi Nisan 2018; ？zel Say？: 582-607 Muhasebe ve Vergi Uygulamalar？ Dergisi Ankara SMMMO 583 companies in Turkey analyzed to determine whether there is a significant relation between applications of corporate governance and firm performance by pooled regression model, to measure how corporate governance practices affects firm performance. Both the return on assets (ROA) and the profit margin (PM) were positively affected by increase in board size, which is one of the corporate governance indicators. It is also determined that the increase in size of asset increases the ROA and the prolongation of company duration increases (PM). However, no significant relationship was found between any of the identified corporate governance indicators and (ROE)