Changing Ownership in the Turkish Non-Financial Corporations Listed on Borsa Istanbul (BIST)

Abstract

Purpose of the study is to investigate the changing ownership structures in the Turkish non-financial corporations listed on Borsa Istanbul (BIST) for the period of 1992-2014. This time frame entails the structural changes in the Turkish economy as well as Turkish corporations. With respect to ownership concentration, Turkish non-financial corporations reveal a concentrated nature. Most changes in ownership structures are triggered by the local and global economic and financial factors. In the years of research, excluding the economic crises periods, we witness a decrease in the shares of the largest shareholders and an increase in the shares owned by the minority shareholders. This finding can be interpreted as the democratization of capital in Turkish corporations. The initial public offerings and privatizations in Turkey tend to increase before the financial and economic crises, implying that democratization of capital needs stable economic environment. Findings assert that most of the new initial public offerings are mainly from the family owned corporations, which yield a promising sign in favor of improving corporate governance practices.

Keywords: Ownership Structure, Ownership Concentration, Corporate Governance, Initial Public Offerings, Privatization, Foreign Direct Investment, Borsa Istanbul (BIST)

JEL Classification: G32, G34, B22