AN ANALYSE OF THE RELATIONSHIP BETWEEN STRENGTH OF AUDITING-ACCOUNTING STANDARDS AND CORPORATE GOVERNANCE

Abstract

Auditing/ accounting standards and corporate governance have important effects on not only the efficiency and productivity of the corporations but also economic, financial and social gains for the shareholders and stakeholders of the corporations. On the other hand, there is very important bidirectional relationship between auditing/ accounting standards and corporate governance. In this study, we investigated the relationship between the strength of audit and accounting standards and corporate governance by using statistical techniques for 140 countries. In the study, considering the strength of auditing and accounting standards, the average of corporate governance level was tested among the country groups. As a result of the study, it is concluded that as the auditing / accounting standards strengthen, the power of corporate governance increased as the average.