dc.contributor.author |
Hay, David |
en |
dc.contributor.author |
Knechel, Warren |
en |
dc.date.accessioned |
2011-08-16T23:24:29Z |
en |
dc.date.issued |
2010 |
en |
dc.identifier.citation |
J ACCOUNT PUBLIC POL 29(1):60-81 Jan 2010 |
en |
dc.identifier.issn |
0278-4254 |
en |
dc.identifier.uri |
http://hdl.handle.net/2292/7472 |
en |
dc.description.abstract |
Leading academic and professional accountants have suggested that the crisis in auditing over the past few years may have had its origin in deregulation which allowed firms to advertise their services and solicit new clients, encouraging accounting firms to become more commercial. In this paper, we look at this issue in New Zealand which has the unique distinction of having separated two key forms of deregulation, namely advertising and solicitation, by 6 years. This allows us to separately examine the effect of each form of market competition on audit fees. We find that advertising is associated with increases in fees, not decreases, which suggests that quality-based advertising took place, and not price-based advertising. In contrast, solicitation corresponded with a general decrease in average fees for clients of the Big 8. We interpret this result as indicating an increase in competition among accounting firms. Our results suggest that there may be a much more complex relationship among market competition, advertising and solicitation, and fees than the arguments used to originally justify deregulation. |
en |
dc.language |
EN |
en |
dc.relation.ispartofseries |
Journal of Accounting and Public Policy |
en |
dc.rights |
Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. Details obtained from http://www.sherpa.ac.uk/romeo/issn/0278-4254/ |
en |
dc.rights.uri |
https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm |
en |
dc.subject |
Auditing |
en |
dc.subject |
Audit fees |
en |
dc.subject |
Competition |
en |
dc.subject |
Deregulation |
en |
dc.subject |
Advertising |
en |
dc.subject |
Direct solicitation |
en |
dc.subject |
NEW-ZEALAND EVIDENCE |
en |
dc.subject |
CREDENCE GOODS |
en |
dc.subject |
SERVICES |
en |
dc.subject |
MARKET |
en |
dc.subject |
INDUSTRY |
en |
dc.subject |
QUALITY |
en |
dc.subject |
LEVEL |
en |
dc.subject |
PRICE |
en |
dc.title |
The Effects of Advertising and Solicitation on Audit Fees |
en |
dc.type |
Journal Article |
en |
dc.identifier.doi |
10.1016/j.jaccpubpol.2009.10.001 |
en |
pubs.issue |
1 |
en |
pubs.begin-page |
60 |
en |
pubs.volume |
29 |
en |
dc.rights.holder |
Copyright: Elsevier Inc. |
en |
pubs.end-page |
81 |
en |
dc.rights.accessrights |
http://purl.org/eprint/accessRights/RestrictedAccess |
en |
pubs.subtype |
Article |
en |
pubs.elements-id |
86570 |
en |
pubs.org-id |
Business and Economics |
en |
pubs.org-id |
Accounting and Finance |
en |
pubs.record-created-at-source-date |
2010-09-01 |
en |