THE RELATIONSHIP OF CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE AN APPLICATIOAN ON MANUFACTURING ENTERPRISES COVERED BY İSE CORPORATE GOVERNANCE INDEX
This study was conducted to test whether there is a relationship between financial performance, and the corporate governance ratings, which increasingly gain importance in terms of the companies today and which expresses adaptation to corporate governance principles. For this purpose, financial performance values and corporate governance ratings of 13 manufacturing enterprises in BIST Corporate Governance Index, belong the period of 2014-2015, were used. For the measurement of the companies’ financial performances, according to the literature, 5 criteria are used which are equity profitability, return on assets, operating profit, net profit and financial leverage ratio. The performance values and the corporate governance ratings of the companies examined, for the period of 2014-2015, are compared in the study. As a result of the statistical analysis, it has been determined that there is a weak and statistically insignificant relationship between the corporate governance ratings and the financial performances of the companies involved in the study.