International Conference on Eurasian Economies
1-3 July 2014 – Skopje, MACEDONIA
Paper ID : 1168
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Ph.D. candidate Cüneyd Ebrar Levent
Session : 2C Finansal Kriz I
Global Financial Crisis and Corporate Governance Lessons from the Crisis
Küresel Finans Krizi ve Bu Krizden Çıkarılacak Kurumsal Yönetim Dersleri
- Ph.D. candidate Cüneyd Ebrar Levent (Istanbul Aydın University, Turkey)
The mortgage crisis, started in 2007 in USA, turned into global financial crisis at the end of 2008. This crisis is assumed to be the largest crisis after The Great Depression occurred in 1929. Global Financial Crisis spread out from USA to developed countries and eventually other countries. Some financial institutions went bankruptcy and some of rest has been survived with governments’ financial supports. Crisis affected the real economy after financial markets, due to crisis production and employment decreased all over the countries. Excess liquidity, deterioration of the mortgage loans structure, excessive increases in house prices, securitization of subprime mortgages, lack of transparency, expansion of derivative markets, ineffectiveness of credit rating agencies and delay of regulatory agencies’ intervention are assumed as “reasonable reasons of the crisis. Before all these reasons, deregulation in financial market in USA is the main reason of this crisis. Corporate governance is against decontrol and lack of transparency which cause crisis. Corporate governance focuses on four pillars, which are fairness, transparency, accountability and responsibility. These four principles are associated with measurement and development of performance of government and companies. In this study, we looked from corporate governance window to the global financial crisis, and expressed lessons and advices to be determined. With effective corporate governance, it is expected to add value to stakeholders and being responsible to social values.
JEL codes: G01, G34
Levent, Cüneyd Ebrar (2014). "Global Financial Crisis and Corporate Governance Lessons from the Crisis" in Proceedings of International Conference of Eurasian Economies 2014, pp.499-506, Skopje, MACEDONIA.
Full paper in PDF format.
Session 2C: Finansal Kriz I