Introduction and objective: Understanding the nature of trends that create company profits is an important issue in accounting research. For this reason, the proper establishment of corporate governance mechanisms is a fundamental measure for optimal use of resources and improving the company's performance. The present study was conducted with the aim of investigating the effectiveness of the important indicators of the audit committee on the quality of institutional ownership and the stability of banks admitted to the Tehran Stock Exchange.
Materials and methods: This descriptive study analyzed the correlation relationship using secondary data extracted from the financial statements of companies admitted to the Tehran Stock Exchange. In order to evaluate the variables, past analysis (financial statements of companies) was used. The correlation between research variables was tested with the help of regression model estimation.
Findings: The findings showed that significant changes were observed in relation to the ACI and ACS index between 2015 and 2015. Also, there was a significant relationship between the stability of the bank and the effectiveness of the audit committee with the health of each bank in the stock market and institutional quality. The size of the audit committee and the independence of the audit committee were also related to institutional ownership. There was a significant relationship between the audit committee and the independence of the audit committee with institutional ownership, so that the size of the audit committee had a negative relationship and the independence of the audit committee had a positive relationship with institutional ownership.
Conclusion: Smaller and more independent audit committees increase the stability of the bank and this issue causes the positive effectiveness of the audit committee and the stability of the bank. Also, the effectiveness of the audit committee has a direct relationship with bank stability and institutional quality, and institutional quality has a positive relationship with the stability of banks admitted to the Tehran Stock Exchange.