TY  - JOUR
TI  - Market Reactions Following Corporate Governance Rating Changes: Evidence from the Istanbul Stock Exchange
AB  - 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.
AU  - TUAN, Koray
AU  - BORAK, METIN
PY  - 2019
JO  - Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi
VL  - 33
IS  - 3
SN  - 1300-4646
SP  - 755
EP  - 772
DB  - TRDizin
UR  - http://search/yayin/detay/371247
ER  -