Trends of non-financial corporations listed on Borsa Istanbul: Rethinking corporate ownership and governance under COVID-19

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Abstract

The purpose of this study is to analyze trends of non-financial corporations listed on Borsa Istanbul (BIST) in terms of ownership structure for the period of 2002-2019. According to our findings, Turkish non-financial corporations reveal a concentrated nature as an example of family capitalism. Findings also reveal that initial public offerings are mainly from family-controlled corporations. This is noteworthy as corporations integrate more to the capital markets of Turkey. Besides, they get more disciplined as they subject to the regulations of the governing bodies and internalise corporate governance criteria. In terms of ownership mix, findings denote that non-financial corporations listed on BIST benefit from the advantages of conglomerates, cross-ownership, and foreign ownership in line with the literature. Contrary to several emerging economies, state-ownership has a minor share which renders strength and quality of governance level. The concentrated nature of corporations is believed to have a positive effect on governance mechanisms for controlling agency problems especially in the environment of uncertainty during COVID-19. Although Turkish capital markets have promising and progressing corporate governance mechanisms, steps to build up advanced digital governance mechanisms for the “digital new normal” should be taken as soon as possible.

Keywords: Ownership Structure, Ownership Mix, Ownership Concentration, Family Capitalism, Corporate Governance, COVID-19, Uncertainty, BIST, Agency Problem

Authors’ individual contribution: Conceptualization – G.A. and G.G.; Methodology – G.G.; Writing – G.A.; Investigation – G.A.; Resources – G.A. and G.G.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G32, G34, G38, E5, K4

Received: 25.07.2020
Accepted: 09.10.2020
Published online: 12.10.2020

How to cite this paper: Atici, G., & Gursoy, G. (2020). Trends of non-financial corporations listed on Borsa Istanbul: Rethinking corporate ownership and governance under COVID-19. Journal of Governance & Regulation, 9(3), 132-143. https://doi.org/10.22495/jgrv9i3art10