Audit Committee and Firm Value: An Empirical Investigation

The objective of this paper is to analyze the impacts of audit committee on firm value. Employing panel data on a sample that consists of 141 manufacturing firms whose shares are traded on Borsa Istanbul during the period between 2011 and 2019, this paper found that the inclusion of audit committee members with accounting and finance background, audit committee size and the number of audit committee meetings positively influence firm value. This paper demonstrates that the value of manufacturing firms listed on Borsa Istanbul is significantly affected by audit committee characteristics. In the context of emerging economies, this paper offers new perspectives on the association between firm value and audit committee. The results of empirical analysis also provide important implications for policymakers, creditors and shareholders.