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

Macroeconomic stability is important for a country’s sustainable economicgrowth and social welfare. There are many economic and political factorsaffecting macroeconomic stability at sectoral, national and internationallevels. In financial system, while investors lend their savings to companies,they decide according to performance indicators of companies infinancial statements. However, accuracy and reliability of informationin financial statements of companies depends on level of developmentin accounting and auditing standards on one hand, and on corporatemanagement capacity on other. There is asymmetrical information aboutaccuracy of financial information of firm between company managers andinvestors who want to invest in company. This asymmetrical informationcan cause investors to make wrong choices, triggering financial andeconomic instability. In this context, developments in accounting andauditing standards and corporate governance level play an importantrole in solving asymmetric information problem and maintainingmacroeconomic stability.In this context, main purpose of this study is to analyse empiricallyeffects of accounting and auditing standards and corporate governanceon macroeconomic stability. According to results of study; explanatoryvariables, Corporate governance and Strength auditing accountingstandards affect dependent variable in same direction. The improvementof Accounting and Auditing standards and Corporate Governance climateis important not only for strengthening of firms and sectors, but also fornational macroeconomic stability. As a result, giving sufficient importanceto development of accounting and auditing standards and corporategovernance in economic policy designs will contribute to preservationand strengthening of macroeconomic stability.