Is the audit services market competitive following Arthur Andersen's collapse?
This study investigates whether audit markets remain competitive in the wake of Arthur Andersen's demise and merger with Ernst & Young to create the Big Four. We conduct the study estimating audit fee models using Australian audit market data from both 2000 and 2003 to determine whether there is any evidence of cartel pricing either before, or subsequent to, the merger. In both years, we find evidence of a Big N price premium when estimating an audit fee model across all clients, and when we estimate the model separately across large and small client market segments. This evidence is consistent with product differentiation by Big N auditors and competitive markets. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 AFAANZ.
Year of publication: |
2008
|
---|---|
Authors: | Hamilton, Jane ; Li, Yang ; Stokes, Donald |
Published in: |
Accounting and Finance. - Accounting and Finance Association of Australia and New Zealand - AFAANZ, ISSN 0810-5391. - Vol. 48.2008, 2, p. 233-258
|
Publisher: |
Accounting and Finance Association of Australia and New Zealand - AFAANZ |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Is the audit services market competitive following Arthur Andersen's collapse?
Hamilton, Jane, (2008)
-
Is the audit services market competitive following Arthur Andersen's collapse?
Hamilton, Jane, (2008)
-
Hamilton, Jane, (2014)
- More ...