Financial Corporate Governance Mechanisms and Islamic Tradition in Turkish States

If it is utilised successfully, Corporate Governance is a beneficial nexus regarding its principles of transparency, accountability, social responsibility and fairness that can be observed the similar principles of religions. This paper aims to make a descriptive comparative analysis between Islamic tradition and the contemporary corporate governance context regarding Turkish states. A descriptive methodology was utilized to realize a comparative analysis between Islamic tradition and the main peculiarities of contemporary corporate governance practices. The findings show that the Turkish state tradition and tax system have important variables that can give a comprehensive understanding under four important titles, which are financial recordkeeping, financial regulation mechanisms, family and social structures in business and solutions to financial conflicts. It can be concluded that there is no contradiction between conventional corporate governance systems and Islamic interpretation of corporate governance, some problems can be raised by cultural and state-dependent variables. Previous studies accept the four important variables of financial recordkeeping, financial regulation mechanisms, family and social structures in business and solutions to financial conflicts as different subjects. But, to emphasize a cultural uniformity of Anatolian corporate governance structure which takes its main force from the morality of Turk and Islam, these dimensions are accepted as only one determinant of a system. This study is designed to trigger the next works to consider a holistic framework for the creation of a governance structure which belongs to Anatolia alone.