AUDIT COMMITTEE EFFECTIVENESS AND CONSERVATISM CONCEPT

Purpose- The main aim of this study is to examine the relationship between audit committee effectiveness and conservatism levels of companies identified as indicators of financial reporting quality. Methodology- In order to achieve this aim, panel data regression analysis was performed using 1903 observations obtained from 233 non-financial publicly-traded company between 2008-2017. Findings- The research findings show that the effectiveness of the audit committee is positively related to conservatism level of companies. Conclusion- As a result of the analysis, it can be said that the firms with high audit committee effectiveness will follow more conservatism accounting policies and consequently the quality of financial reporting will increase