The determinants and effects of corporate governance level: evidence from Istanbul stock exchange

Abstract

This paper aims to investigate the determinants and effects of corporate governance level of the the firms operating in Istanbul Stock Exchange. It was drawn that firm value was the most important determinant for corporate governance level to be enhanced. Moreover, it was found that firm value mediated corporate investor ratio on corporate governance level. On the other hand, there found a positive relationship between growing corporate governance implementations of the firms and the firm performance. The manifestation of the agency costs resulting from earnings management practices in direction decreasing earnings was seen as a variable that moderates this relationship. Lastly, it was concluded that rising corporate governance implementations had impact on foreign investor preference and that these investors chosen those firms whose corporate governance implementations were enhanced. (C) 2014 Published by Elsevier Ltd.