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dc.contributor.authorGunn, Joshua L.
dc.contributor.authorKawada, Brett S.
dc.contributor.authorMichas, Paul N.
dc.date.accessioned2020-01-15T20:57:31Z
dc.date.available2020-01-15T20:57:31Z
dc.date.issued2019-11-14
dc.identifier.citationGunn, J., Kawada, B., & Michas, P. (2019). Audit market concentration, audit fees, and audit quality: A cross-country analysis of complex audit clients. Journal Of Accounting And Public Policy, 38(6), 106693. doi: 10.1016/j.jaccpubpol.2019.106693en_US
dc.identifier.issn0278-4254
dc.identifier.doi10.1016/j.jaccpubpol.2019.106693
dc.identifier.urihttp://hdl.handle.net/10150/636463
dc.description.abstractRegulators around the world are concerned about the potentially harmful effects of high audit market concentration on audit pricing and quality. However, results in the overall literature have failed to reach consensus on this issue. We contribute to this debate by arguing that the audit market is segmented and that concentration in the Big 4 segment of the market leads to higher audit pricing. Accordingly, our analyses use international data and focus on concentration within the Big 4 group of firms across countries. We find that audit fees are increasing in our concentration measure for clients where the barriers to entry by competing auditors are higher, as proxied by client size, international operations, and IFRS use. Finally, we find evidence that audit quality is decreasing in Big 4 market concentration for these types of engagements. This indicates a wealth transfer from shareholders to audit firms when auditor concentration is high because these complex clients are charged more, but receive audits that are of lower quality. (C) 2019 Elsevier Inc. All rights reserved.en_US
dc.description.sponsorshipUniversity of Pittsburgh University of Pittsburgh; San Diego State University; University of Arizonaen_US
dc.language.isoenen_US
dc.publisherELSEVIER SCIENCE INCen_US
dc.rightsCopyright © 2019 Elsevier Inc. All rights reserved.en_US
dc.subjectAudit market concentrationen_US
dc.subjectAudit feesen_US
dc.subjectAudit pricingen_US
dc.subjectCross-country audit feesen_US
dc.subjectGlobal audit feesen_US
dc.subjectInternational Financial Reporting Standardsen_US
dc.subjectClient complexityen_US
dc.titleAudit market concentration, audit fees, and audit quality: A cross-country analysis of complex audit clientsen_US
dc.typeArticleen_US
dc.contributor.departmentUniv Arizona, Eller Coll Managementen_US
dc.identifier.journalJOURNAL OF ACCOUNTING AND PUBLIC POLICYen_US
dc.description.note24 month embargo; published online: 14 November 2019en_US
dc.description.collectioninformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.en_US
dc.eprint.versionFinal accepted manuscripten_US
dc.source.volume38
dc.source.issue6
dc.source.beginpage106693


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