Investigation of strategic human resources activity in corporate governance practices: A research with Artificial Neural Networks

Abstract

Corporate governance, which is defined as the laws, rules and elements system controlling the activities in a business and whose principles are fairness, transparency, accountability and responsibility, is of great importance for all companies of national and international nature. The reasons that make corporate governance so important for all market mechanisms are financial crises and large-scale business scandals. Corporate governance, which is constantly regulated by taking into account its historical development and becomes more mandatory every day, is a form of strategic management based on holistic approach and sustainability. This research was interpreted by means of the BIST Corporate Governance Index data, which makes corporate governance arrangements, and the information obtained from the annual reports published on the websites of companies, institutions and organizations. The analysis was carried out with the data of 15 companies, institutions and organizations that can provide common data in the same time series. It is designed to investigate the effectiveness of HRM on 15 companies by applying Artificial Neural Networks (ANN) method, which is one of Artificial Intelligence methods. In the findings of the study, the classification success analysis of the model and the importance of independent variables were determined. It demonstrated that HRM is effective, the most important variable is the fact that it is 100% standardized importance and human resources policy, and 87.3% standardized importance and corporate governance compliance report.