The Effectiveness of the Turkish Corporate Governance System: CEO Changes and Performance Measures

18 Pages Posted: 17 May 2009

See all articles by M. Banu Durukan

M. Banu Durukan

Dokuz Eylul University Faculty of Business; Ljubljana University Faculty of Economics

Serdar Ozkan

American University of the Middle East; Izmir University of Economics

A. Fatih Dalkilic

Dokuz Eylul University Faculty of Business

Date Written: May 15, 2009

Abstract

The aim of the current study is to investigate the effectiveness of the Turkish corporate governance system. To reach this aim, the paper first discusses the corporate governance system of Turkey briefly. The measures of effectiveness of a corporate governance system are formulated and CEO turnover is used as a measure. The effectiveness of the Turkish corporate governance system is analyzed by utilizing data from the Istanbul Stock Exchange (ISE) companies. CEO turnover and corporate performance measures are used as dependent and independent variables, respectively, in the logit regressions. Size included in the analysis as a control variable. The evidence suggests that the Turkish corporate governance is not ineffective, but it should immediately be noted that this evidence can not be interpreted as it being effective. The CEOs in Turkey are evaluated based on the pretax income which may be a reflection of a corporate governance system that can be characterized by being bank based, having concentrated ownership structures and low investor protection.

Keywords: corporate governance systems, effectiveness, Turkey, CEO turnover

JEL Classification: G34

Suggested Citation

Durukan, M. Banu and Ozkan, Serdar and Dalkilic, A. Fatih, The Effectiveness of the Turkish Corporate Governance System: CEO Changes and Performance Measures (May 15, 2009). Available at SSRN: https://ssrn.com/abstract=1405251 or http://dx.doi.org/10.2139/ssrn.1405251

M. Banu Durukan (Contact Author)

Dokuz Eylul University Faculty of Business ( email )

Izmir
Turkey

Ljubljana University Faculty of Economics ( email )

Ljubljana
Slovenia

Serdar Ozkan

American University of the Middle East ( email )

250 St.
Block 3, Building 1
Egaila
Kuwait

Izmir University of Economics ( email )

Sakarya Cad. No: 156
Balcova
Izmir, 35330
Turkey

A. Fatih Dalkilic

Dokuz Eylul University Faculty of Business ( email )

Faculty of Business
Tınaztepe Yerleskesi Buca
Izmir, 35160
Turkey
905056487555 (Phone)

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