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My brother does have 16 gauge wire on his home theater system and it appears to work well. I have 18 gauge wire on mine and I am comletely satisfied as to its toneality and soundfield balance.
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You may wish to rethink that as 18AWG wire has nearly 4x the DC resistance of 12AWG. Thus running 20ft of 18AWG wire would yield the same resistance of nearly 80ft of 12AWG!
insertion loss of 20ft of 12AWG with 8 ohm speaker = .07dB
insertion loss of 20ft of 18AWG with 8 ohm speaker = .28dB
The minor additive AC resistance of 12AWG wire at 20kHz is completely washed out by the DC resistance of 18AWG wire so even at frequencies up to the capabilities of human hearing, 12AWG wire still has FAR lower AC resistance, about 2.3 times lower as a matter of fact!