Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange

TUAN, Koray; BORAK, METIN

Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange

Koray TUAN, (Çukurova Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İşletme Bölümü, Adana, Türkiye)

Metin BORAK (Çukurova Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İşletme Bölümü, Adana, Türkiye)

Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi

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Yıl: 2019 Cilt: 33 Sayı: 3 Sayfa Aralığı: 755 - 772 Metin Dili: İngilizce İndeks Tarihi: 30-10-2020

Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange

Öz:

This study investigates the market reaction to the increases and decreases incorporate governance ratings of public firms quoted at the Borsa Istanbul (BIST), as well as themarket reaction to the increases and decreases in the scores for the subcomponents of the totalratings. The findings suggest that investors react negatively to the announcements of decreases inthe overall corporate governance ratings and the scores for the four subcomponents. On the otherhand, the findings surprisingly suggest that investors also react negatively to the announcements ofincreases in the overall corporate governance ratings and the scores for the subcomponents of theseratings. These findings contradict the expectation that investors would value improvements ingovernance ratings highly based on the assumption that increases in these ratings would implyimproved corporate governance that would lead to decreased agency costs and therefore, increasedfirm value. The findings are robust to various econometric specifications and tests.

Anahtar Kelime:

Kurumsal Yönetim Derecelendirme Notu Değişiklikleri Sonrası Piyasa Tepkisi: Borsa İstanbul Örneği

Öz:

Bu çalışmada, Borsa İstanbul (BIST)’da işlem gören halka açık şirketlerin kurumsal yönetim derecelendirme notlarında ve ayrıca toplam derecelendirme notunu oluşturan alt bileşen puanlarında meydana gelen artışlara ve azalışlara yönelik piyasanın tepkisi incelenmiştir. Çalışma bulguları, yatırımcıların toplam kurumsal yönetim derecelendirme notlarındaki ve dört alt bileşenin puanlarındaki düşüşlere olumsuz tepki verdiklerini göstermektedir. Diğer taraftan, bulgular beklenenin aksine, yatırımcıların toplam kurumsal yönetim derecelendirme notlarındaki artışların ve bu notu oluşturan alt bileşen puanlarındaki artışlara da olumsuz tepki verdiklerine işaret etmektedir. Bu sonuçlar, yatırımcıların kurumsal yönetim derecelendirme notlarındaki artışların kurumsal yönetimi geliştirdiği ve vekalet maliyetlerini düşürerek, firma değerinin artmasına yol açacağı varsayımına dayanan beklentisiyle çelişmektedir. Bulguların doğruluğu çeşitli ekonometrik yöntemler ile test edilmiştir.

Anahtar Kelime:

Belge Türü: Makale Makale Türü: Araştırma Makalesi Erişim Türü: Erişime Açık

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APA	TUAN K, BORAK M (2019). Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. , 755 - 772.
Chicago	TUAN Koray,BORAK METIN Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. (2019): 755 - 772.
MLA	TUAN Koray,BORAK METIN Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. , 2019, ss.755 - 772.
AMA	TUAN K,BORAK M Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. . 2019; 755 - 772.
Vancouver	TUAN K,BORAK M Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. . 2019; 755 - 772.
IEEE	TUAN K,BORAK M "Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange." , ss.755 - 772, 2019.
ISNAD	TUAN, Koray - BORAK, METIN. "Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange". (2019), 755-772.

APA	TUAN K, BORAK M (2019). Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 33(3), 755 - 772.
Chicago	TUAN Koray,BORAK METIN Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi 33, no.3 (2019): 755 - 772.
MLA	TUAN Koray,BORAK METIN Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, vol.33, no.3, 2019, ss.755 - 772.
AMA	TUAN K,BORAK M Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2019; 33(3): 755 - 772.
Vancouver	TUAN K,BORAK M Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2019; 33(3): 755 - 772.
IEEE	TUAN K,BORAK M "Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange." Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 33, ss.755 - 772, 2019.
ISNAD	TUAN, Koray - BORAK, METIN. "Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange". Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi 33/3 (2019), 755-772.