Using Ohlson Model to measure firm value, this study examines the effect of the establishment of audit committees on firm value. We use the sample of firms listed in the Taiwan Stock Exchange (TSE) and Over The Counter (OTC) from 2007 to 2012. Securities Exchange Act was amended in 2006, requires firms to establish the audit committees. However, Taiwan is not that adopted mandatory but that taken to promote voluntary approach. Thus, the number of firms with audit committees is still low in Taiwan. In this situation, the empirical results could lead to the problem of self-selection. This study used Nearest-Neighbor Matching in the propensity score matching method (PSM) and one sample with two pairs. The empirical results indicate that the firms with audit committees have significantly higher firm value than those without audit committees after controlling for the self-selection bias. In other words, firms with audit committees will increase investor confidence and investment willingness. So that the stock price of firms will raise, and firm value also relatively raise.