ANALYSIS OF RELATIONSHIP BETWEEN CORPORATE MANAGEMENT PRACTICES AND FIRM MARKET PERFORMANCE AND FIRM FINANCIAL PERFORMANCE: AN APPLICATION IN BIST

This study, which was conducted to determine the relationship between corporate governance practices and the company’s market and financial performance, has a review period of 2012-2017. The study, in which corporate ratings were assigned as proxy for corporate governance achievements, accepted non-financial firms included in the BIST Corporate Governance Index and who had ratings in the review period. The firm’s financial performance is represented by earnings per share (HBK), financial adequacy (FNYET), return on assets (ROA) and return on equity (ROE). The firm’s market performance is expressed by net free cash flows to equity (ONNA), the natural logarithm of market value (LNPDEG), and Tobin’s Q (TOBQ) firm value indicators. As a result of the study conducted based on panel data analysis, positive significant relationships were found between the success of the corporate governance practice and the firm market performance and firm financial performance.