Investigation of the Effect of Corporate Governance Practices on Audit Quality with Logistics Regression Analysis: BIST-100 Application


Businesses need to either increase the quality of auditing or disseminate corporate governance practices in order to maintain their reliability and reputation. The purpose of this study, the independent audit firms in Turkey, corporate governance practices which they have made in the audit is to determine whether the effect on audit quality. In this study, logistic regression analysis was used to measure the effect of corporate governance practices on audit quality. For this purpose, 2012-2016 data of companies from different sectors traded in BIST-100 index were used. In the study, audit quality was taken as the dependent variable and corporate governance practices were taken as independent variables. To what extent the independent auditing firms perform their corporate governance practices, Board structures of independent audit firms, Whether the general managers and the chairmen of the board of directors are the same people, Whether there is a shareholder unit of independent audit firms, Whether the independent audit firms have a public disclosure policy, Whether independent audit firms have a policy that protects the rights of shareholders As a result of the analysis carried out for each year by using Logistic Regression analysis, it is determined that the effect of corporate governance practices on audit quality continues to increase.and whether the customers of independent audit firms have corporate governance practices. Achieving the highest percentage in the classification of corporate governance practices in the last year shows that the best explanation for the effect of independent variables in the model on audit quality in the last year.


Keywords


Audit Quality, Corporate Governance, Logistic Regression Analysis, BIST 100

Author : Metin BAŞ -Hilmi UYGUN
Number of pages: 111-125
DOI: http://dx.doi.org/10.29228/TurkishStudies.40431
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Turkish Studies-Economics,Finance,Politics
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