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

Koray TUAN; Metin BORAK

Makale detayları

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

Yazarlar:

Koray TUAN | Metin BORAK

Yayıncı:

Ataturk University

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Journal of Economics and Administrative Sciences 2019 Vol.33 Issue 3, pp.755-772

Belge Tipi:

Makale

Yayın Tarihi:

7/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000678874

Sıklık:

Üç Aylık

eISSN:

2822-2652

Özet:

 


This
study investigates the market reaction to the increases and decreases in
corporate governance ratings of public firms quoted at the Borsa Istanbul, as
well as the market reaction to the increases and decreases in the scores for
the subcomponents of the total ratings. The findings suggest that investors
react negatively to the announcements of decreases in the overall corporate
governance ratings and the scores for the four subcomponents. On the other
hand, the findings surprisingly suggest that investors also react negatively to
the announcements of increases in the overall corporate governance ratings and
the scores for the subcomponents of these ratings. These findings contradict
the expectation that investors would value improvements in governance ratings
highly based on the assumption that increases in these ratings would imply
improved corporate governance that would lead to decreased agency costs and
therefore, increased firm value. The findings are robust to various econometric
specifications and tests.


.

Makale detayları

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

Yazarlar: Koray TUAN | Metin BORAK

Yayıncı: Ataturk University

Ana Başlıklar: Sosyoloji & antropoloji

Dergi: Journal of Economics and Administrative Sciences 2019 Vol.33 Issue 3, pp.755-772

Belge Tipi: Makale

Yayın Tarihi: 7/2019

Belge Dili: İngilizce

Document ID (Org No.): 2000678874

Sıklık: Üç Aylık

eISSN: 2822-2652

Sayı

Yazarlar:

Koray TUAN | Metin BORAK

Yayıncı:

Ataturk University

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Journal of Economics and Administrative Sciences 2019 Vol.33 Issue 3, pp.755-772

Belge Tipi:

Makale

Yayın Tarihi:

7/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000678874

Sıklık:

Üç Aylık

eISSN:

2822-2652