BAYRAKTAROĞLU, HAKAN Mehmet Akif Ersoy Üniversitesi, Turkey , ÇELİK, İSMAİL Mehmet Akif Ersoy Üniversitesi, Turkey

THE EFFECTS OF CORPORATE GOVERNANCE INDEX ON RETURN VOLATILITY: AN APPLICATION IN ISTANBUL STOCK EXCHANGE

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The financiers of stock investigate adopted quality of corporate governance applications as much as financial performance before they invest to the enterprises in developing countries. The need of sharing enterprises’ financial or non-financial information with public opinion builds trust in the aspect of the financiers of stock and thus it affects the viewpoint of enterprises in the process of institutionalization to the stock positively the aim of this study is to determine whether the corporate governance practices in Turkey s Capital Markets have effects on the stability of Istanbul Stock Exchange or not. For this purpose, the date range 27/05/2014 to 08/31/2007 with data held on the 1st and 2nd sessions daily volatility models has been used in the analysis. The results of GARCH model shows that both BIST-100 Index and BIST-30 Index of corporate governance practices has a negative effect on the return volatility.

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Corporate Governance , Volatility , Stok Market

Afyon Kocatepe University Journal Of Economics an‎d Administrative Sciences

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