THE IMPACT OF CORPORATE GOVERNANCE PRACTICES ON BANK EFFICIENCY: A CASE OF TURKEY

This study investigates the relationship between corporate governanceand the efficiency of Turkish banks. We use a sample of 10Turkish depositorybanks listed in Borsa Istanbul covering the ten year period 2005-2015.DataEnvelopment Analysis (DEA) has been used in examining the efficiency levelsof the sampled Turkish banks and panel regression analysis was used forfinding out whether there is an effect of corporate governance on bankefficiency. The results have shown that free float rate and board independencehave a negative and significant impact on the efficiency of the banks. As forthe other variables; it is seen that major shareholder, number of committeesand board size have positive and significant relationship with the bankefficiency. Finally the results have shown that there is no statisticallysignificant relationship between institutional ownership and bank efficiency