Investigation of the Relationship between Corporate Governance and Capital Structure in Insurance Companies with Panel Regression Analysis

Aysegul Ertugrul

Journal of BRSA Banking and Financial Markets, 2023, vol. 17, issue 1, 107-130

Abstract: Corporate governance principles in a company consist of fairness, transparency, accountability and responsibility. Companies with fully implemented corporate governance principles are expected to reduce costs and increase corporate value. It is believed that increasing corporate value can be achieved by minimizing the cost of capital. When examined from these aspects, the value of the enterprise can be increased by reducing capital costs with corporate governance principles in this study, the relationship between the corporate governance of insurance companies and their capital structures has been examined. Financial indicators of insurance companies traded in Borsa Istanbul from 2014 to 2021 are used as data. The financial leverage ratio (total debt/total assets) is considered as the dependent variable and the proportion of foreign members, the proportion of female members, and the proportion of independent members as dependent variables are considered as independent variables in the study. Panel regression analysis was applied as the evaluation method, and it was seen that the ratios of foreign members, independent members and female members positively affected the capital structure. It has also been observed that the variable that most influences the capital structure is the proportion of foreign members.

Keywords: Corporate Governance; Capital Structure; Panel Regression Analysis. (search for similar items in EconPapers)
JEL-codes: C33 D24 G34 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bddk.org.tr/Content/docs/bddkDergiTr/dergi_0033_06.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdd:journl:v:17:y:2023:i:1:p:107-130

Access Statistics for this article

More articles in Journal of BRSA Banking and Financial Markets from Banking Regulation and Supervision Agency Contact information at EDIRC.
Bibliographic data for series maintained by Sumeyye Azize CENGIZ ().