The Relationships among Corporate Governance Principles and Firm Performance

Abstract

This study aims to analyze the effects of transparency and responsibility on accountability and fairness respectively and the effects of accountability and fairness on the firm performance. The principles of corporate governance which are fairness, transparency, responsibility and accountability have been studied. The data were collected randomly from 116 companies in Istanbul in 2019 based on field study including five-point Likert scales questionnaire. Structural equation modelling (SEM) method was used to conduct the analysis. Analysis results have been concluded that accountability has a positive effect on the firm performance. Additionally, responsibility has a positive effect on fairness. Conversely, the hypotheses suggested positive relations between transparency and accountability and between fairness and firm performance were not supported.

Keywords: Fairness, Transparency, Accountability, Responsibility, Corporate Governance, Firm Performance