Power in the boardroom: a study on Turkish family‐owned and listed companies

Oba, Beyza; Ozsoy, Zeynep; Atakan, Serap

doi:10.1108/14720701011085571

Cited by 29 publications

(23 citation statements)

References 46 publications

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“…We speculate that our results will most likely hold in these types of economies. However, an interesting study for the future would also be to examine whether our results carry over to economies dominated by family-owned businesses, for example Turkey (Oba, Ozsoy, & Atakan, 2010). On the one hand, the operational control of the firm mostly resides with owners in these economies; on the other hand, information asymmetry problems are more acute.…”

Section: Equity or Debt Financing 205mentioning

confidence: 90%

Equity or Debt Financing: Does Good Corporate Governance Matter?

Mande

Park

Son

2011

Corporate Governance

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Manuscript Type: EmpiricalResearch Question/Issue: We examine whether corporate governance plays a role in influencing a firm's choice of financing, i.e., equity versus debt. We hypothesize that the likelihood of equity financing increases with governance because of a reduction in agency costs between investors and managers in these firms. While the reduction in agency costs occurs for both equity and debt financing, we argue that there is a more significant effect on equity financing. Research Findings/Insights: Using a sample of over 2,000 US equity and debt issuances over the period 1998 to 2006, we find that our measures of corporate governance effectiveness have a positive impact on the likelihood of choosing equity compared to debt. This association is more pronounced in small firms where information asymmetry is higher between managers and investors. Theoretical/Academic Implications: Our findings refine and extend the pecking order hypothesis, which suggests that firms will issue equity as their last resort because of the high information asymmetry associated with equity financing. We provide some of the first evidence that the pecking order hypothesis can be mitigated by corporate governance. Specifically, we find that the likelihood of issuing equity increases as governance increases. Further, we find that where agency costs due to information asymmetry are greater, the positive impact of governance on the likelihood of equity financing is also greater. That is, in support of agency cost theory, we find that firms facing high agency costs benefit the most from investing in corporate governance mechanisms that lower the agency costs. We are not aware of any prior study, published or unpublished, that has documented this result. Practitioner/Policy Implications: From a practical perspective, our study suggests that firms wishing to access equity capital markets should pay attention to their corporate governance. Specifically, by investing in corporate governance systems, firms facing high agency costs may be able to obtain easier access to not just debt but also equity markets. From a practice standpoint, in the years prior to securing financing, firms should consider making improvements to their governance (e.g., changes to board structure and/or auditor), carefully weighing the costs of making these improvements against the benefits of securing better and cheaper access to equity markets.

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Section: Equity or Debt Financing 205mentioning

confidence: 90%

Equity or Debt Financing: Does Good Corporate Governance Matter?

Mande

Park

Son

2011

Corporate Governance

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“…However, the main agency problem in emerging markets like Turkey is not a conflict of interest between managers and owners, but rather the expropriation of minority shareholders by controlling shareholders [21]. High ownership concentration, especially by families, is prevalent in Turkey [36]. Business groups owned and managed by families are the most common organization type and are characterized by low free-float ratios to preserve the control of the family, which is, in most cases, the major shareholder [37].…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey

Akben-Selçuk

2019

Sustainability

121

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The objective of this study is to investigate the impact of corporate social responsibility (CSR) engagement on firm financial performance in a developing country, Turkey, and to analyze the moderating role of ownership concentration in the CSR–financial performance relationship. The sample consists of non-financial public firms listed on the Borsa Istanbul (BIST)-100 index and covers the period between 2014 and 2018. Empirical results using an instrumental variable approach show that corporate social responsibility has a positive relationship with financial performance. Furthermore, findings indicate that this relationship is negatively moderated by ownership concentration even when endogeneity is controlled for.

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“…Starting from this fact, we attempt to identify the determinants of GHG voluntary disclosure of Turkish firms in the present study. The Turkish business environment, which is characterized by a dominant state, highly concentrated ownership and family-controlled business groups [36,37], has been experiencing intense changes due to the effects of mainly globalization, dynamics of international markets and government policies [38]. The examples of these changes include the regulations of Capital Markets Board with regard to corporate governance, enforcement of a new Turkish Commercial Code and adopting International Financial Reporting Standards which are beneficial for the national and international entities, for investors, for auditors and for other stakeholders [39][40][41].…”

Section: Introductionmentioning

confidence: 99%

Determinants of Voluntary Greenhouse Gas Emission Disclosure: An Empirical Investigation on Turkish Firms

Akbaş

Canikli

2018

Sustainability

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Firms worldwide have been facing an increasing pressure to disclose their Greenhouse Gas (GHG) emissions since GHG emissions are seen as the main source of global warming which is one of the most challenging problems that the world is faced with. For this reason, voluntary GHG disclosure represents a growing area of research interest. However, the existing research generally focuses on developed countries. In this sense, the present paper aims to contribute to the existing GHG disclosure literature by analyzing the determinants of voluntary disclosure of firms operating in a developing country, Turkey. The effects of both financial characteristics and board structures of firms on voluntary disclosure decisions are analyzed as the possible determinants of GHG disclosures of Turkish firms. We use two proxies for assessing the firms’ GHG disclosures. The first proxy, “sensitiveness tendency”, indicates the response behavior of firms to the Carbon Disclosure Project (CDP) survey. The second proxy, namely, “transparence tendency”, represents the disclosure behavior of firms. Using logistic regression models with a sample of 84 listed Turkish companies which were included in the Carbon Disclosure Project survey in 2014, 2015 and 2016, we find that firm size, institutional ownership and market value are positively related to the sensitivity of sampled firms, while board size is negatively related. On the other hand, our results indicate that firm size, profitability and institutional ownership have positive impacts on the transparency of Turkish listed firms.

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Power in the boardroom: a study on Turkish family‐owned and listed companies

Cited by 29 publications

References 46 publications

Equity or Debt Financing: Does Good Corporate Governance Matter?

Equity or Debt Financing: Does Good Corporate Governance Matter?

Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey

Determinants of Voluntary Greenhouse Gas Emission Disclosure: An Empirical Investigation on Turkish Firms

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