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The Impact of the Roles, Structure and Process of Boards on Firm Performance: evidence from Turkey

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  • Veysel Kula

Abstract

This study aims at investigating the impact of the roles, structure and process of boards on performance of Turkish companies. Drawing on the data obtained from a sample of 386 mostly small and non‐listed stock ownership companies, it was found that the separation of chairman and general manager positions has significant positive impact on firm performance. From the board roles of control, service and resource acquisition, firm performance was found to be positively related only to the level of adoption of resource acquisition role. It was also found that the effectiveness, information access and performance evaluation attributes of boards are positively and significantly associated with firm performance.

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  • Veysel Kula, 2005. "The Impact of the Roles, Structure and Process of Boards on Firm Performance: evidence from Turkey," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(2), pages 265-276, March.
    • Handle: RePEc:bla:corgov:v:13:y:2005:i:2:p:265-276
    DOI: 10.1111/j.1467-8683.2005.00421.x
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    References listed on IDEAS

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    1. Klapper, Leora F. & Love, Inessa, 2004. "Corporate governance, investor protection, and performance in emerging markets," Journal of Corporate Finance, Elsevier, vol. 10(5), pages 703-728, November.
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    Cited by:

    1. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Glaister, Keith W., 2018. "The effects of ownership concentration and institutional distance on the foreign entry ownership strategy of Turkish MNEs," Journal of Business Research, Elsevier, vol. 93(C), pages 173-183.
    2. Mohd Azmi Mohd Noor Author_Email: mnmazmi@ tm.com.my & Dr. Faudziah Hanim Bt Fadzil, 2011. "Influence Of Corporate Governance Attributes On Firms’ Financial Performance In Malaysia," Annual Summit on Business and Entrepreneurial Studies (ASBES 2011) Proceeding 2011-039-124, Conference Master Resources.
    3. Geofry Areneke & Abongeh A. Tunyi, 2022. "Chairperson and CEO foreignness and CG quality of emerging markets MNCs: Moderating role of international board interlocks," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3071-3092, July.
    4. repec:ipg:wpaper:2014-077 is not listed on IDEAS
    5. Lippert, Inge, 2008. "Perspektivenverschiebungen in der Corporate Governance: Neuere Ansätze und Studien der Corporate-Governance-Forschung," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-302, WZB Berlin Social Science Center.
    6. Yeh, Chien Mu & Taylor, Tracy & Hoye, Russell, 2009. "Board roles in organisations with a dual board system: Empirical evidence from Taiwanese nonprofit sport organisations," Sport Management Review, Elsevier, vol. 12(2), pages 91-100, May.
    7. Imen Khanchel El Mehdi, 2014. "Les conseils d’administration dans les PME tunisiennes," Working Papers 2014-77, Department of Research, Ipag Business School.
    8. Gérard Hirigoyen & Radhoine Laouer, 2013. "Convergence of Corporate and Public Governance," SAGE Open, , vol. 3(2), pages 21582440134, June.
    9. Abdullah A K Alkhawaldeh & Jamil J Jaber & Dalila Boughaci & Noriszura Ismail, 2021. "A novel investigation of the influence of corporate governance on firms’ credit ratings," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-21, May.
    10. Åberg, Carl & Bankewitz, Max & Knockaert, Mirjam, 2019. "Service tasks of board of directors: A literature review and research agenda in an era of new governance practices," European Management Journal, Elsevier, vol. 37(5), pages 648-663.
    11. Ines Chaabouni & Anis Jarboui, 2016. "Effect of board`s skills on stakeholder value," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(4), pages 84-100, April.
    12. Ciftci, Ilhan & Tatoglu, Ekrem & Wood, Geoffrey & Demirbag, Mehmet & Zaim, Selim, 2019. "Corporate governance and firm performance in emerging markets: Evidence from Turkey," International Business Review, Elsevier, vol. 28(1), pages 90-103.
    13. Phillip C. James, 2020. "Understanding the Impact of Board Structure on Firm Performance: AComprehensive Literature Review," International Journal of Business and Social Research, LAR Center Press, vol. 10(1), pages 1-12, January.
    14. Afef Feki & Walid Khoufi, 2008. "L'effet des caractéristiques du conseil d'administration et de la qualité de l'information financière sur le coût de la dette (Cas des entreprises industrielles françaises)," Post-Print halshs-00525385, HAL.
    15. Afzalur Rashid, 2013. "CEO duality and agency cost: evidence from Bangladesh," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 989-1008, November.
    16. Aylin Ataay, 2016. "Roles of Interlocking Directorates in an Emerging Country: Control and Coordination in Family Business Groups," Eurasian Journal of Business and Management, Eurasian Publications, vol. 4(2), pages 106-116.
    17. Ozgur Arslan & Mehmet Baha Karan & Cihan Eksi, 2010. "Board Structure and Corporate Performance," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 8(1), pages 003-022.
    18. Phillip C. James, 2020. "Understanding the Impact of Board Structure on Firm Performance: AComprehensive Literature Review," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 10(1), pages 1-12, January.
    19. Turhan Kaymak & Eralp Bektas, 2008. "East Meets West? Board Characteristics in an Emerging Market: Evidence from Turkish Banks," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(6), pages 550-561, November.
    20. Afzalur Rashid, 2015. "Revisiting Agency Theory: Evidence of Board Independence and Agency Cost from Bangladesh," Journal of Business Ethics, Springer, vol. 130(1), pages 181-198, August.
    21. Haroon ur Rashid Khan & Waqas Bin Khidmat & Osama Al Hares & Naeem Muhammad & Kashif Saleem, 2020. "Corporate Governance Quality, Ownership Structure, Agency Costs and Firm Performance. Evidence from an Emerging Economy," JRFM, MDPI, vol. 13(7), pages 1-35, July.
    22. repec:mth:ijafr8:v:8:y:2018:i:3:p:140-155 is not listed on IDEAS
    23. Mete KARAYEL & Mesut DOGAN, 2016. "Board Composition and Firm Performance: Evidence from BIST 100 Companies in Turkey," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 33-40.
    24. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.
    25. ŞİT Ahmet & EKŞİ İbrahim Halil & BUYURAN Burcu, 2022. "How Important Is Corporate Governance Features And The Lags On Audit Reports In Firm Performance: The Case Of Turkey," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 218-237, April.

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