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Corporate governance and firm performance in emerging markets: Evidence from Turkey

Ciftci, Ilhan and Tatoglu, Ekrem and Wood, Geoffrey and Demirbag, Mehmet and Zaim, Selim (2019) 'Corporate governance and firm performance in emerging markets: Evidence from Turkey.' International Business Review, 28 (1). 90 - 103. ISSN 0969-5931

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Abstract

This is a study of the relationship between context, internal corporate governance and firm performance, looking at the case of Turkey, an exemplar of family capitalism. We found more concentrated ownership, often in the hands of families, led to firms performing better; concentrated ownership means that controlling families bear more of the risks of poor performance. Less predictably, given that the institutional environment is so well attuned to family ownership, we found that mechanisms that accord room for a greater range of voices and interests within and beyond families – larger boards and foreign ownership stakes – seem to also make for positive performance effects. We also noted that increases in cross ownership did not influence market performance, but was negatively associated with accounting performance. Conversely, we found that a higher proportion of family members on boards had no discernable effect on performance. Our findings provide further insights on the relationship between the type of institutions encountered in many emerging markets, internal corporate governance configurations and firm performance.

Item Type: Article
Uncontrolled Keywords: Corporate governance mechanisms, Institutions, Family capitalism, Firm performance, Emerging markets, Turkey
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Management Science and Entrepreneurship Group
Depositing User: Elements
Date Deposited: 30 Aug 2018 08:23
Last Modified: 30 Aug 2018 09:15
URI: http://repository.essex.ac.uk/id/eprint/22835

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