Board Independence and Financial Performance in Turkey: An Evidence on Bist 100
Board Independence and Financial Performance in Turkey: An Evidence on Bist 100
Author(s): Emre Selçuk Sari, Emir OtluoğluSubject(s): National Economy, Business Economy / Management, Accounting - Business Administration
Published by: Celal Bayar Üniversitesi Sosyal Bilimler Enstitüsü
Keywords: Board Independence; Financial Performance; Corporate Governance; Regression Analysis;
Summary/Abstract: The communique issued by Capital Markets Board of Turkey (CPM) in 2011 requires the attendance of independent board members of public companies. This study examines the relationship between the presence of independent board member and financial performance. The sample of the study consists of the companies listed on Borsa Istanbul (BIST) 100 Index. The relationship between the board independence and accounting based, market based and cash based financial performance indicators is examined. The result of regression analysis indicates that the board independence affects Tobin’s Q positively and ROE and Cash Flow negatively. This study implicates that the presence of independent board member has caused an increase in market based financial performance of companies.
Journal: Celal Bayar Üniversitesi Sosyal Bilimler Dergisi
- Issue Year: 16/2018
- Issue No: 02
- Page Range: 99-116
- Page Count: 18
- Language: English