THE IMPACT OF CORPORATE GOVERNANCE PRACTICES ON BANK EFFICIENCY: A CASE OF TURKEY

Authors : Mustafa SOBA, İşıl EREM, Fatih CEYLAN

Pages : 305-322

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Publication Date : 2016-12-29

Article Type : Research Paper

Abstract :This study investigates the relationship between corporate governance and the efficiency of Turkish banks. We use a sample of 10Turkish depository banks listed in Borsa Istanbul covering the ten year period 2005-2015.Data Envelopment Analysis insert ignore into journalissuearticles values(DEA); has been used in examining the efficiency levels of the sampled Turkish banks and panel regression analysis was used for finding out whether there is an effect of corporate governance on bank efficiency. The results have shown that free float rate and board independence have a negative and significant impact on the efficiency of the banks. As for the other variables; it is seen that major shareholder, number of committees and board size have positive and significant relationship with the bank efficiency. Finally the results have shown that there is no statistically significant relationship between institutional ownership and bank efficiency
Keywords : Bank Efficiency, Corporate Governance, Data Envelopment Analysis, Panel Data, Turkey