The relationship between corporate governance applications and working capital management efficiency in Borsa Istanbul

Abstract

This paper demonstrates the outcomes of the detailed series of analyses for revealing the power of CG applications on companies' NWCE which are traded at the XU100 in Turkey. This dissertation is established on the basis of secondary data which are acquired from 15 different and appropriate XU100 companies' annual reports and Finnet2000 terminal, for the period covering from 2013 to 2020 based upon annually data. Each one of the all companies XKURY market rating value which is supplied by accrediated "SAHA Rating" company, has taken and has utilised as components of CGI. This dissertation holds it's unique specialty for XU100 companies which is comprises not only unprecedented data set but also unprecedented modelling approach. This dissertation has a potential for enligthen the way for future studies which are never studied for XU100 before as such detailed manner. For going into particulars, one of the main contributor of companies' financial performance indicator which is identifed as NWC, incorporates CCC. DSO, DIO and DPO have used as a measurement proxy of CCC. In the second place, SR has measured as companies' market reflection and attractiveness from the point of consumer. To obtain more credible results, in this dissertation more than one estimation approach have implemented, including ARDL and cointegration tests utilised after realization of required clean and white noise raw data acquiring. Consummately, four different econometric models have conducted as of a separate two group within the consideration of general to specific modelling. The findings of experimental studies have presented that there are an existence of negative and inverse inter-relationships amongst CCC-CGI and CCC-SR. Whereas, CGI-SR model has positive relationship in between. According to experimental studies' outcomes from CGI-SR model, SR parameter has found statistically insignificant compared the CCC and CGI parameters, nevertheless CCC–CGI model outcome supports this dissertation with the result of if CGI increases, CCC will be decreased. If CCC rate is decreased, companies will perform better in financial perspective. Lastly, outputs of this dissertation may be implemented for a better management and enhanced performance in remuneration for attaching the importance of CG in companies' NWCE.