Effect of Corporate Governance Committee Structure on Corporate Governance Compliance Rating

Abstract

In this study, effect of corporate governance committee composition on corporate governance compliance rating (CGCR) was investigated, based on the assumption that the corporate governance committee may affect CGCR in terms of its roles and responsibilities. Firms included in XKURY were selected as a sample in the study. Statistical analysis were carried out for the existence of the specified relationship by using the data of the companies in question for the period of 2014-2020. Independent variables of the study are % of female members, % of members of the board, % of independent board members and % of non-executive board members in the corporate governance committee. The effects of these variables on the companies' compliance with corporate governance principles were analyzed by performing Mann-Whitney U test. The obtained results show that at 95% confidence level presence of non-executive board members at different rates in corporate governance committees makes a difference on the CGCR of the enterprises. To the best knowledge, there is no study in the national and international literature that investigates the effect of corporate governance committee composition on CGCR. It is thought that this study differs from other studies in this respect and contributes to the literature.