ABSTRACT
In 1999, the Organisation for Economic Co-operation and Development (OECD) issued a set of corporate governance standards and guidelines to help countries to evaluate and improve their legal, institutional and regulatory frameworks for corporate governance. In this context, Aysan investigates the relationship between Turkish corporate culture and the degree of implemention of the Principles of Corporate Governance in Turkish firms. In parallel with the corporate governance practices in the rest of the world, the amendment of the Capital Markets Law (CML) and the establishment of the Capital Markets Board (CMB) in 1981 could be considered the foundations of corporate governance as a response to weak market conditions in Turkey. The empirical sample consists of Turkish non-financial firms incorporated on the Borsa Istanbul (BIST) during the 200511 period. Due to their different accounting practices, financial companies are excluded from the sample. The other governance mechanism is the separation of the posts of CEO and chairperson in corporations.
