After the financial collapses of major U.S. companies in 2002, the Sarbanes-Oxley Act were issued, which focused on the role of corporate governance in the elimination of financial and administrative corruption faced by many companies. So that can be done through an activate of the role which play by non-executive directors on the boards of companies, and focus on the need to be the majority of the members of the Board of Directors of the non-executive members, with a clear definition of responsibilities within the Board of Directors or its committees inside like the Audit Committee, and remuneration Committee and the Finance Committee (17).The process of stock trading in the financial markets became one of the methods that work on the development of the economy. It also supports companies in growth and development. Finally, it was the reason for the expansion of the companies, as well as the transformation of international companies, and ordered them to follow international accounting standards to contempo...
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...ICE IN HIGH-PERFORMANCE COMPANIES
This study examines and compares the corporate governance practices of Turkish HPCs and ORDs. Turkish HPCs were chosen in previous research (Turel et al., 2012) based on the following criteria (from 2005 to 2009): Cash flow return on investment (CFROI) at twice or more the cost of capital or greater than 5% discount rate in Turkey.
Growth rates in assets exceed average growth rate of Turkish GDP. Relative total shareholder returns (TSR) above the ISE 100 average. Turkish HPCs are characterized by: sustained and superior cash flow returns, asset growth, and total shareholder returns. As shown in previous research, HPCs in Turkey have superior total asset management, profitability, financial risk, liquidity, and operating asset management (Turel et al., 2012). We expect that HPCs will be models of good corporate governance practices.
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