AN EMPIRICAL INVESTIGATION OF THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND PROFITABILITY: EVIDENCE FROM TURKISH CAPITAL MARKET

Abstract

The study objectives were to determine the effect of corporate governance through share holders, public disclosure, corporate Board of directors and corporate Stakeholders on profitability of selected firms listed on Turkey capital markets. The study objectives were to examine the effect of share holders on Profitability, secondly was to assess the effect of corporate Public Disclosure on Profitability, thirdly to determine the effect of corporate Stakeholders on Profitability and to examine the effect of corporate Board of directors on Profitability of selected firms listed on Turkey capital markets. The data was attained from 338 respodents through questionnaires; the analysis was done using simple linear regression analysis. The analysis was done based on SPSS data provided for the study provided in assessing the degree of the assessment for the degree of connection for the variables of the study based on regression analysis. The studies conclude that the public disclosure is key determinants for the profits attaining. Secondly the study concludes that corporate Stakeholders had a moderate significant effect on the profitability of the companies. It’s concluded that the corporate Stakeholders can be used to influence profits of the companies listed on the capital markets to some extent. Finally. It’s concluded that the corporate Board of directors can be used to influence profits of the companies listed on the capital markets to some extent. The study recommends that share holder interest need to be adequately catered for to increase the profitability of the companies. Its significant that modes of cooperation are existing in attaining a fully reliable force of the operations to significantly strive for the profitability of the companies. The study recommend that corporate Stakeholders need to be well developed, fairly operating and making sound appearances in the decision making of the companies. The study recommend for efficient policy on the corporate board of directors polices on planning necessary for attaining a mass avenue of the people’s environment for the significant management of the boards, their size determination and operations efficiency