This study documents a substantial impact of Big4 auditor choice on the sale proceeds of controlling interests of U.S. private firms. A representative private stock-purchase company with median enterprise value ranging from $14 to 18 million experiences a dollar value decrease in enterprise...

In this study, we examine the effect of lenders' certification for pricing of auditing services for the borrowers. We find that loan initiation is associated with significant reduction in auditing fees. The decrease in auditing fees is more pronounced for non-syndicated loans and when the...

The 1991 amendment to the auditor appointment requirement of Section 86 of the Ontario Municipal Act removes certain barriers to entry into the Ontario municipal audit market. The purpose of this study is to provide evidence that the amendment has enhanced competition in this market. The results...

The objective of this article is to revisit the literature on Big-N audit fee premiums in the municipal setting using a methodology that controls for self-selection bias. Because auditor choices can be predicted based on certain client characteristics, using standard one-stage ordinary least...

This study conducts a local analysis of the relation between market structure and audit fees. The research question of interest to us is how audit fees are determined by each practicing local office, after taking into account the auditor's own position in a local market and the influence exerted...

For the past 20 years, researchers have viewed the pricing of audit services as a function of supply and demand, much like other commodities or services traded in the marketplace. The audit-pricing model, originally proposed by Dan Simunic (1980), has been used to explore various aspects of...

Recently, Li (2009) reports that an auditor’s going-concern decision is unaffected by pressure from her economically important clients in 2001, but is positively affected in 2003. Li attributes these findings to enhanced auditor independence under the Sarbanes-Oxley Act (SOX) of 2002. However,...