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An Empirical Analysis for the Effects of Accounting and Auditing Standards and Corporate Governance on Macroeconomic Stability

Author

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  • Hulya Kesici Caliskan

    (Istanbul Universitesi, Iktisat Fakultesi, Iktisat Bolumu, Istanbul, Turkiye)

  • Ayse Atilgan Saridogan

    (Canakkale Onsekiz Mart Uni., Canakkale SBMYO, Muhasebe ve Vergi Bolumu, Canakkale, Turkiye)

Abstract

Macroeconomic stability is important for a country’s sustainable economic growth and social welfare. There are many economic and political factors affecting macroeconomic stability at sectoral, national and international levels. In financial system, while investors lend their savings to companies, they decide according to performance indicators of companies in financial statements. However, accuracy and reliability of information in financial statements of companies depends on level of development in accounting and auditing standards on one hand, and on corporate management capacity on other. There is asymmetrical information about accuracy of financial information of firm between company managers and investors who want to invest in company. This asymmetrical information can cause investors to make wrong choices, triggering financial and economic instability. In this context, developments in accounting and auditing standards and corporate governance level play an important role in solving asymmetric information problem and maintaining macroeconomic stability. In this context, main purpose of this study is to analyse empirically effects of accounting and auditing standards and corporate governance on macroeconomic stability. According to results of study; explanatory variables, Corporate governance and Strength auditing accounting standards affect dependent variable in same direction. The improvement of Accounting and Auditing standards and Corporate Governance climate is important not only for strengthening of firms and sectors, but also for national macroeconomic stability. As a result, giving sufficient importance to development of accounting and auditing standards and corporate governance in economic policy designs will contribute to preservation and strengthening of macroeconomic stability.

Suggested Citation

  • Hulya Kesici Caliskan & Ayse Atilgan Saridogan, 2021. "An Empirical Analysis for the Effects of Accounting and Auditing Standards and Corporate Governance on Macroeconomic Stability," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 101-114, July.
    • Handle: RePEc:ist:iujepr:v:8:y:2021:i:2:p:101-114
    DOI: 10.26650/JEPR880830
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    References listed on IDEAS

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    More about this item

    Keywords

    Macroeconomy; Stability; Corporate Governance; Accounting; Auditing JEL Classification : E61; G34; M41;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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