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

By I. Ciftci, Ekrem Tatoğlu, G. Wood, Mehmet Demirbag, Selim Zaim. International Business Review, 2019

366 citations recorded by the source corpus.

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 increase 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.

Subfields: Accounting, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/f9146869bc2600333fc05569d1ee569f363d6e6b

Citations in the corpus

• Big Data and Predictive Analytics and Manufacturing Performance: Integrating Institutional Theory, Resource‐Based View and Big Data Culture (2019, neutral): “Ciftci et al. (2019) argue that institutional theory has multiple strands: micro sociological approaches, which focus on internal organizational dynamics (c.f. DiMaggio and Powell, 1983) and macro level economic and socio-economic approaches that seek to establish association between a firm…”