Corporate Governance: A Comparative Study of Firms in Northern Cyprus and Turkey
Corporate Governance: A Comparative Study of Firms in Northern Cyprus and Turkey

Summary/Abstract: This paper investigates and compares whether, implementing proper Internal and External governance provisions and practicing Corporate Governance Principles have positive association with corporate performance and profitability. First, the study investigates the impact of the corporate market culture elements (internal governance mechanism – firm based performance) and corporate capital market culture elements (external governance mechanism – capital market based performance) on unlisted firms’ performance in Northern Cyprus where, Collaboration, Control, Creativity and Compete are designated as corporate market culture elements in inducing Corporate Market Culture behaviour and the impact of Board of Directors Managerial Incentives, Capital Structure Provisions and Control Systems, Law and Regulations and Capital Markets are designated as corporate capital market culture elements reflecting Corporate Capital Market Culture behaviour. Secondly, investigates the performance of corporate governance index firms in the Istanbul Stock Exchange practicing the Corporate Governance Principles of Turkey make difference in listed firms’ performance. The Return on Assets and Return on Equity are designated as firm based performance and Tobin’s q as capital market based performance. The empirical evidence give support to the view that, the Internal and External governance provisions are complementary and positively associated with corporate performance then Return on Assets, Return on Equity and Tobin’s q.

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