Work

Concentration without differentiation: A new look at the determinants of audit market concentration

Year: 1998

Type: article

Abstract: We show that a model of undifferentiated price competition closely predicts US audit market concentration. Contracting practices, client size distributions and differences in auditor productivity jointly determine audit firms' market shares. In contrast to prior literature, neither quality differences nor economies of scale for larger firms are necessary in our model to explain audit market concentration.

Source: Journal of Accounting and Economics

DOI: 10.1016/s0165-4101(98)00027-5

Authors: Rajib Doogar, Robert F. Easley

Institutions: University of Illinois Urbana-Champaign, University of Notre Dame

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,170

Funder: University of Notre Dame