Evidence on (the lack of) audit-quality differentiation in the private client segment of the belgian audit market
AbstractThis paper contributes to the empirical audit-quality literature and provides evidence on (the lack of) audit-quality differentiation in the private client segment of the Belgian audit market. Auditor size is used as audit-quality proxy. Prior evidence on audit-quality differentiation between Big Six and non-Big Six auditors in the private client segment of the Belgian audit market is mixed. In this paper we investigate whether these mixed results stem from the inability of the dichotomous Big Six/non-Big Six variable to capture auditor-size differences in a less concentrated audit market. To that end we examine whether alternative continuous measures of audit-firm size (i.e. auditor market share, number of audit-firm clients, number of partners in the audit firm, total assets and operating profit of the audit firm) have a constraining impact on earnings management in a large sample of privately held Belgian companies (n = 1,302). Overall, we do not find evidence that is supportive of quality differentiation in the private client segment of the Belgian audit market.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal European Accounting Review.
Volume (Year): 13 (2004)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/REAR20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Verbruggen, Sandra & Christiaens, Johan & Reheul, Anne-Mie & Van Caneghem, Tom, 2011. "Audit pricing in a reformed nonprofit market," Working Papers 2011/29, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
- Tom Van Caneghem, 2010. "Audit pricing and the Big4 fee premium: evidence from Belgium," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(2), pages 122-139, February.
- Vanstraelen, Ann & Richard, Chrystelle & Francis, Jere, 2006. "Assessing France's joint audit requirement: are two heads better than one?," Economics Papers from University Paris Dauphine 123456789/1073, Paris Dauphine University.
- Arnedo, Laura & Lizarraga, Fermin & Sanchez, Santiago, 2007. "Does public/private status affect the level of earnings management in code-law contexts outside the United States? A study based on the Spanish case," The International Journal of Accounting, Elsevier, vol. 42(3), pages 305-328.
- S. Verbruggen & J. Christiaens & A. Reheul & T. Van Caneghem, 2011. "Audit pricing in a reformed nonprofit market," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/764, Ghent University, Faculty of Economics and Business Administration.
- Reheul, Anne-Mie & Van Caneghem, Tom & Verbruggen, Sandra, 2011. "Auditor choice in the Belgian nonprofit sector: a behavioral perspective," Working Papers 2011/36, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.