The impact of audit committee characteristics on financial performance

The importance given to the audit committee, which increases the reliability of companies' financial information, takes part in the selection of independent audit companies, and regulates the company's internal control system, has increased with the accounting scandals in the 21st century. In accordance with the communiqué on the Amendment to the "Communiqué on Independent Auditing Standards in the Capital Market" published in the Official Gazette dated 27/7/2006 and numbered 26241 Companies are required to establish a committee responsible for auditing. In this study, the effect of audit committee characteristics on financial performance of 248 companies registered in BIST in 2020 was examined. In this study, the impact of audit committee size, independence, female member ratio, financial expertise, firm size, firm age, firm financial leverage on the return on asset (ROA) values of companies was examined through the activity reports of service sector companies. In the study, the relationship between audit committee characteristics on ROA and the strength of this relationship were measured in the analysis performed using the regression analysis method. As a result, it was determined that there was a significant positive relationship between the ratio of female audit committee members and ROA. Keywords: Audit, Audit committee, Financial performance