The Effect of Audit Committee Effectiveness on Corporate Governance: An Empirical Study on Publicly Listed Companies in Indonesia

Abstract

© 2019 NADIA. An emerging country like Indonesia need a strong corporate governance in order for publicly listed companies to move forward and for its financial stability. This study explores the effect of audit effectiveness i.e. audit committee expertise, audit committee meetings, and audit committee independence on corporate governance. The population of this study is the awardees of most trusted, trusted, and fairly trusted companies for six consecutive years which the scores were based from Corporate Governance Perception Index (CGPI). The findings showed that the audit committee effectiveness significantly and positively affects corporate governance.