The effect of audit committee characteristics on firm performance: An application in BIST 100

Inadequate corporate governance practices and manipulations in financial reports cause accounting scandals. In order to ensure the confidence of shareholders and investors, firms should prepare transparent and reliable financial reports. Accordingly, audit committees should control the reliability of financial reports and play an active role in improving this process. It is argued that audit committees play a key role in the preparation of transparent financial reports within the scope of corporate governance principles. Accordingly, the purpose of this study is to examine the impact of audit committee characteristics on firm performance of firms operating in BIST 100 between 2010 and 2020. The data of the firms are estimated by panel data analysis method. Two models were constructed for the purpose of the study. The findings of the study indicate that there is no significant relationship between return on assets and the number of audit committee meetings, while there is a significant relationship between earnings per share and audit committee size. The results of the study will contribute to the existing literature by providing evidence on audit committee effectiveness in monitoring financial reporting processes for shareholders, investors and other information users.