Author/Authors :
sari, emre selçuk istanbul üniversitesi - işletme fakültesi - muhasebe anabilim dalı, turkey , otluoğlu, emir istanbul üniversitesi - işletme fakültesi - finans anabilim dalı, turkey
Title Of Article :
BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE IN TURKEY: AN EVIDENCE ON BIST 100
Abstract :
The communique issued by Capital Markets Board of Turkey (CPM) in 2011 requires the attendance of independent board members of public companies. This study examines the relationship between the presence of independent board member and financial performance. The sample of the study consists of the companies listed on Borsa Istanbul (BIST) 100 Index. The relationship between the board independence and accounting based, market based and cash based financial performance indicators is examined. The result of regression analysis indicates that the board independence affects Tobin’s Q positively and ROE and Cash Flow negatively. This study implicates that the presence of independent board member has caused an increase in market based financial performance of companies.
NaturalLanguageKeyword :
Board Independence , Financial Performance , Corporate Governance , Regression Analysis
JournalTitle :
Celal Bayar University Journal Of Social Sciences
