Denetim Komitesi Özelliklerinin Firma İhtiyatlılık Düzeyine Etkisi: BİST’te Bir Uygulama
The Effect of Audit Committee Characteristics on Firm Conservatism Level: An Application in BIST

Summary/Abstract: In this study, the relationship between the conservatism levels of companies determined as an indicator of financial reporting quality and the 5 basic audit committee characteristics (independence, financial expertise, size, tenure, number of meetings) is examined. In this context, panel data analysis is applied using 1180 observations obtained from 263 publicly-traded company between 2012 and 2016, and the audit committee characteristics are tested in relation to the companies' conservatism levels. As the research method, Basu Model, the most preferred method in the literature, is used. Findings show that while the audit committee size is positively related to conservatism, the number of meetings is negatively related to conservatism. The results show that if the number of members of the audit committee increases, it becomes more effective and increases the level of conservatism, thus raising the quality of financial reporting. On the other hand, if the audit committee meets more frequently during the period, the level of conservatism decreases and the quality of financial reporting decreases accordingly.

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