ABSTRACT

Corporate governance and family-based problems reduce the life expectancy of publicly traded family companies. This situation causes investors and shareholders to suffer as well as the owners of the company. To avoid these problems, it is recommended that publicly-owned family business’ managers to attach importance to implementing corporate governance principles and internal audit standards. In our work, the problems of institutionalization of family companies, the benefits of corporate governance and internal audit were examined In order to make better decisions for potential investors of family companies, compulsory and optional legislation and recommendation decisions were compiled in public family companies in terms of corporate governance and internal audit, and two groups were separated and classified. As a result of the work, a new grading system has been proposed in accordance with these two groups. It has been recommended to invest in first degree corporate governance-compliant companies that adhere to both the law and the recommendations.