| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w19251 |
| 来源ID | Working Paper 19251 |
| Competition in the Audit Market: Policy Implications | |
| Joseph J. Gerakos; Chad Syverson | |
| 发表日期 | 2013-07-25 |
| 出版年 | 2013 |
| 语种 | 英语 |
| 摘要 | The audit market's unique combination of features-its role in capital market transparency, mandated demand, and concentrated supply-means it receives considerable attention from policymakers. We explore the effects of two market scenarios that have been the focus of policy discussions: a) further supply concentration due to one of the "Big 4" auditors exiting and b) mandatory audit firm rotation. To do so, we first estimate publicly traded firms' demand for auditing services, treating services provided by each of the Big 4 as differentiated products. We then use those estimates to calculate how each scenario would affect client firms' consumer surplus. We estimate that, conservatively, exit by one of the Big 4 would reduce client firms' surplus by $1.2-1.8 billion per year. These estimates reflect only firms' lost options to hire the exiting auditor; they do not include the likely fee increases resulting from less competition among auditors. We calculate that the latter could result in audit fee increases between $0.3-0.5 billion per year. Such losses are substantial; by comparison, total audit fees for public firms were $11 billion in 2010. We find similarly large impacts from mandatory audit firm rotation, estimating consumer surplus losses at approximately $2.4-3.6 billion if rotation were required after ten years and $4.3-5.5 billion if rotation were mandatory after only four years. |
| 主题 | Microeconomics ; Market Structure and Distribution ; Financial Economics ; Corporate Finance ; Other ; Law and Economics ; Industrial Organization ; Market Structure and Firm Performance ; Industry Studies ; Accounting, Marketing, and Personnel |
| URL | https://www.nber.org/papers/w19251 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/576926 |
| 推荐引用方式 GB/T 7714 | Joseph J. Gerakos,Chad Syverson. Competition in the Audit Market: Policy Implications. 2013. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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