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Is There a Relationship Between Corporate Governance and Value‐based Financial Performance Measures? A Study of Turkey as an Emerging Market
Author(s) -
Bayrakdaroglu Ali,
Ersoy Ersan,
Citak Levent
Publication year - 2012
Publication title -
asia‐pacific journal of financial studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.375
H-Index - 15
eISSN - 2041-6156
pISSN - 2041-9945
DOI - 10.1111/j.2041-6156.2012.01071.x
Subject(s) - stock exchange , corporate governance , business , panel data , accounting , index (typography) , market value , value (mathematics) , stock market , market value added , emerging markets , monetary economics , finance , econometrics , economics , statistics , mathematics , paleontology , horse , world wide web , computer science , biology
The purpose of this study is to investigate the relationship of value‐based performance measures – economic value added (EVA), market value added (MVA) and cash value added (CVA) – with corporate governance using data on 41 corporations listed on the Istanbul Stock Exchange‐100 Index. Multiple panel regression is used covering the 1998–2007 period. The findings indicate that EVA, MVA, and CVA increase if the CEO is a member of the board at the same time, and board size does not significantly affect performance. Ownership concentration is significantly related to all performance measures except for MVA, while manager ownership is not a significant variable in increasing corporate performance. Foreign ownership is found to increase EVA but decrease MVA.