Sustainable investment in Turkey: the case in context - an update

Corporate Governance Rating and Ownership Structure in the Case of Turkey

“…We also excluded some outlier observations. 6 In the end, we reached 76 firm year observations with 22 firms covering a six-year time span from 2008 to 2012. 7 In terms of ownership structure, Turkish corporations can be characterized as highly concentrated, family-owned firms attached to a group of companies generally owned by the same family or a group of families.…”

“…On the contrary, [20] find no systematic relation between ownership structure and firm performance. 6 Observations that were more than six standard deviations away from category means are excluded. In total, five year-firm observations are dropped.…”

“…The existence of such tight family control may not be a problem in countries with effective regulations and laws for protecting minority shareholders, but it may be pose challenges in an emerging market setting like Turkey where protection of minority shareholders are not as strong. External mechanisms of corporate governance, such as the market for corporate control, do not function in Turkey due to highly concentrated ownership structures [6]. Therefore studying family control and its impact on corporate governance ratings takes a special meaning in the Turkish case.…”