Raif Parlakkaya and Ahmet Diken and Erkan Kara
Corporate Governance and Share Prices Firm Level Review in Turkey
2445 - 2449
2015
9
7
International Journal of Economics and Management Engineering
https://publications.waset.org/pdf/10002109
https://publications.waset.org/vol/103
World Academy of Science, Engineering and Technology
This paper examines the relationship between
corporate governance rating and stock prices of 26 Turkish firms
listed in Turkish stock exchange (Borsa Istanbul) by using panel data
analysis over fiveyear period. The paper also investigates the stock
performance of firms with governance rating with regards to the
market portfolio (i.e. BIST 100 Index) both prior and after
governance scoring began. The empirical results show that there is no
relation between corporate governance rating and stock prices when
using panel data for annual variation in both rating score and stock
prices. Further analysis indicates surprising results that while the
selected firms outperform the market significantly prior to rating, the
same performance does not continue afterwards.
Open Science Index 103, 2015