The Effect of The Quality of Audit on The Financial Performance of Companies: An Application in Borsa Istanbul

Kesen, Bilal; Salur, Mehmet Nuri

doi:10.25287/ohuiibf.702681

Cited by 2 publications

(2 citation statements)

References 15 publications

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“…In the literature, similar results were found on companies active in different areas. Analysis results support the findings of Cengiz, Dinç, and Güngör (2017), Kesen andSalur (2020), andBouaziz (2012). Banks that know they would have a quality audit process spare their procedures to maximize and/or optimize their profitability while conducting the same according to legal regulations in effect.…”

Section: Extended Abstractsupporting

confidence: 85%

An Implementation on The Relationship of Audit Quality and Profitability in Participation Banks

AKBAŞ¹

2022

ODÜSOBİAD

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As in all commercial enterprises, audit activities are very important in banks. The results of the audit activities reveal how well the activities of the organization are functioning. Audit processes are carried out by committees appointed by the boards of directors. In this study, the effect of audit committee effectiveness on bank profitability is analyzed. The data used in the analysis belong to participation banks operating in Turkey from 2015 to 2021. The selected variables were obtained from reports prepared according to the auditing standards applied in the banking sector. A balanced panel data method is used in the study. As a result of the analysis, a significant and positive relationship was found between the effectiveness of the audit committee and the ratio of net dividend income to assets (NKEK) at a 10% statistical significance level. A one-unit change in audit committee effectiveness affects the dependent variable of the model, NKEK, by 0.9627 units in the same direction. There is no significant relationship between the other independent variable, total assets, and the dependent variable. Banks with an effective audit committee may have a high audit quality. Knowing that they will undergo a high-quality audit process and adjusting internal audit processes accordingly may increase the profitability of banks.

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Section: Extended Abstractsupporting

confidence: 85%

An Implementation on The Relationship of Audit Quality and Profitability in Participation Banks

AKBAŞ¹

2022

ODÜSOBİAD

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“…In the study, it was concluded that there was a significant and positive relationship between independent audit quality and financial performance. Kesen and Salur (2020) investigated in their study whether the quality of independent audit had an impact on the financial performance of firms. For this purpose, they analyzed the financial statements of 148 companies traded in the BIST manufacturing sector between 2013 and 2018 and applied multiple linear regression…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Audit Opinions on TOBIN S Q and Stock Value by Panel Data Analysis

Sağlar,

Gizer

2023

isarder

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Purpose –Financial statements of businesses contain information risk for various reasons. The most accepted way to reduce the information risk is the independent audit of the financial statements of the enterprises. It is thought that the independently audited financial statements will have a positive impact on the market value of the enterprises. The main purpose of the research under this assumption is to measure the impact of audit opinion on the market value of the companies that operated in the manufacturing sector and traded on Borsa Istanbul. Design/methodology/approach –For measuring the impactof audit opinion on the market value of the companies that operated in the manufacturing sector and traded on Borsa Istanbul between 1998 to 2019 Tobin's Q ratio and stock price are used to represent the market value. Panel data analysis is used in the research, because of data sets consisting of both cross-section and time series. Tobin's Q ratio and stock price are determined as the dependent variables, audit opinion is determined as the independent variable and the leverage ratio and asset size are determined as control variables in the research. Finding –It is examined within the scope of 1651 financial statements and audit reports of 110 companies. And it is examined Tobin's Q ratio values on 31 March, 30 June, 30 September, 31 December and at the time of the announcement of the audit report. Also it is examined the firm's stock price on the date of the audit firm's opinion, on the date of the one day before and after it.Discussion –As a result of the research, it has been revealed that audit opinions do not affect the Tobin’s Q ratio but affect stock price of companies in Turkey.

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The Effect of The Quality of Audit on The Financial Performance of Companies: An Application in Borsa Istanbul

Cited by 2 publications

References 15 publications

An Implementation on The Relationship of Audit Quality and Profitability in Participation Banks

An Implementation on The Relationship of Audit Quality and Profitability in Participation Banks

The Effect of Audit Opinions on TOBIN S Q and Stock Value by Panel Data Analysis

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