Sustainable investment in Turkey: issue brief

IFC launched a series of sustainable investment country reports initially covering the largest emerging capital markets attracting global portfolio investors: Brazil, India, and China. Further reports have been added to the series covering Sub-Saharan Africa, the Middle East and North Africa, and Turkey. This Issue Brief 's the summary version of the report, “Sustainable Investment in Turkey,

Rating based indexing of Istanbul Stock Exchange, lessons from its failure and Novo Mercado's sucess in to advance corporate governance reforms

This paper compares the objectives, processes and outcomes of different approaches adopted by BOVESPA and ISE for differentiating “better governed” firms listed on their respective boards. Novo Mercado of BOVESPA, launched at the end of December 2000, was able to attract over 30 companies within 5 years, whereas ISE CG Index, announced in February 2005, is not yet launched due to lack of interest from the issuers

Synthesis report: Third International Conference on Corporate Governance in Emerging Market

The Third International Conference on Corporate Governance in Emerging Markets is one in a series of academic events organized by the Emerging Markets Corporate Governance Network (EMCGN). The Global Corporate Governance Forum at IFC endorses and supports the Network, which was first convened by Professor Stijn Claessens in 2001. The biannual academic conferences organized by the Network feature themes that are important to academics and practitioners interested in the role and effect of corporate governance in emerging markets.This report summarizes 10 thematically different sessions that explored important topical areas in corporate governance research

Corporate governance, an international review, special issue on Turkey

The article reports on corporate governance in Turkey. For a period of time, concern has been attributed to differences in the institutional structures of countries and their effects on corporate performance. This paper studies some issues that result from different corporate governance systems, with particular attention on their importance to developing countries

Sustainable investment in Turkey 2010

The main objectives of this report are as follows: 1 To understand and provide a review of the current state of the Sustainable Investment (SI) market in Turkey, 2 To identify the drivers and obstacles for sustainable investments, and assess the commercial feasibility of different approaches and initiatives that may stimulate the SI market in Turkey, 3 To analyze the institutional prerequisites and interventions that will fuel the development of investments, which would, in turn, encourage a betterallocation of local and international capital to sustainable enterprises and hence support sustainable development of the Turkish economy. This study forms part of a series of assessments of Sustainable Investment (SI) in Brazil (2009), India (2009) and China (2009), and draws upon earlier reports published by IFC jointly with the Economist Intelligence Unit: Sustainable Invest ing in Emerging Markets: Unscathed by the Financial Crises (2010) and with Mercer; Gaining Ground, Integrating Environmental, Social and Governance (ESG) Factors into Investment Processes in Emerging Markets (2009)

Report on the first 10 years of the emerging markets corporate governance research network (EMCGN)

This paper provides an account of the Emerging Markets Corporate Governance Research Network (EMCGN)and its first 10 years of activities. The Network was established under the auspices of the Global Corporate Governance Forum (now incorporated into IFC’s Corporate Governance Group). The paper describes the history of the EMCGN and its objective (to stimulate research focused on corporate governance in emergingmarkets as well as transition and developing countries); its structure, which is a joint undertaking of corporate governance research centers and internationally recognized scholars, with IFC Corporate Governance acting as its catalyst; and its modalities: organizing workshops, holding biennial conferences, and disseminating andcommunicating research

The Impact of Corporate Governance Structures on the Corporate Investment Performance in Turkey

In spite of the fact that most research has concentrated on the typical agency problem between managers and dispersed shareholders, in many countries large shareholders are much more frequently observed than firms with dispersed ownership structures. While large shareholders are perceived as a potential solution to the typical agency problem between managers and dispersed shareholders, less research has been done on the costs of large shareholders. One important issue in this literature is that deviations of cash flow rights from voting rights often result in substantial value discounts. In this paper we test for the impact of such deviations on corporate investment performance in Turkey. To measure corporate investment performance we estimate returns on investment relative to company costs of capital, a methodology that overcomes the endogeneity problem, which is known to contaminate results in the empirical corporate governance literature. Consistent with existing studies, we find that the average Turkish listed company has a return on investment which is less than its cost of capital. We also report significantly better investment performance for companies that do not deviate from one share-one vote by using pyramidal ownership structures, dual-class shares and other devices that enhance the control power of large shareholders beyond their cash flow rights. We also find that business group membership improves the investment performance and relative market valuation of companies. Copyright (c) 2006 The Authors; Journal compilation (c) 2006 Blackwell Publishing Ltd.

The effect of corporate governance on firm value and profitability: time-series evidence from Turkey

We study the corporate governance practices of Turkish public firms from 2006 to 2012, relying on hand-collected data covering the vast majority of listed firms. We build a Turkey Corporate Governance Index, TCGI, composed of subindices for board structure, board procedure, disclosure, ownership, and shareholder rights. TCGI predicts higher market value (with firm fixed effects) and higher firm-level profitability with firm random effects. The principal subindex which predicts higher market value and profitability, and drives the results for TCGI as a whole, is disclosure subindex. We also study the determinants of firms' governance and find that most firm-specific factors have little effect on firms’ governance choices