Evidence on (the lack of) audit-quality differentiation in the private client segment of the Belgian audit market?
Abstract
Auditor size is used as audit-quality proxy. Prior evidence on audit-quality differentiation between big 6 and non-big 6 auditors in the private client segment of the Belgian audit market is mixed. In this paper we investigate whether these mixed results tem from the inability of the dichotomous Big6/non-Big6 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 hare, 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 = 1302). Overall, we do not find evidence that is supportive of quality differentiation in the private client segment of the Belgian audit market.Download Info
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Paper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/224445.Length:
Date of creation: 2002
Date of revision:
Handle: RePEc:ner:leuven:urn:hdl:123456789/224445
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Web page: http://www.kuleuven.be
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- Heidi Vander Bauwhede & Marleen Willekens, 2004. "Evidence on (the lack of) audit-quality differentiation in the private client segment of the belgian audit market," European Accounting Review, Taylor and Francis Journals, vol. 13(3), pages 501-522.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Azhaar Lajmi & Marjène Gana, 2011. "Structure de Propriété et Qualité de l'Audit Externe : Cas des Entreprises Belges Cotées," Post-Print hal-00650542, HAL.
- Tendeloo, Brenda van & Vanstraelen, Ann, 2008. "Earnings management and audit quality in Europe: evidence from the private client segment market," Open Access publications from Maastricht University urn:nbn:nl:ui:27-23114, Maastricht 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.
- Janssen, Boudewijn & Vandenbussche, Hylke & Crabbé, Karen, 2005.
"Corporate tax savings when hiring a big 4 auditor: empirical evidence for Belgium,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/383277, Katholieke Universiteit Leuven.
- Janssen, Jos Boudewijn & Vandenbussche, Hylke & Crabbé, Karen, 2005. "Corporate tax savings when hiring a Big 4 auditor: Empirical evidence for Belgium," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/122712, Katholieke Universiteit Leuven.
- 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.
- 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.
- Maijoor, Steven J. & Vanstraelen, Ann, 2006. "Earnings management within Europe: the effects of member state audit environment, audit firm quality and international capital markets," Open Access publications from Maastricht University urn:nbn:nl:ui:27-18430, Maastricht University.
- 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.
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