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Strategic pricing by Big 4 audit firms in private client segments

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  • Wouter Dutillieux
  • Donald Stokes
  • Marleen Willekens
  • Gary Monroe

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  • Wouter Dutillieux & Donald Stokes & Marleen Willekens & Gary Monroe, 2013. "Strategic pricing by Big 4 audit firms in private client segments," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(4), pages 961-994, December.
    • Handle: RePEc:bla:acctfi:v:53:y:2013:i:4:p:961-994
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    References listed on IDEAS

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    1. Willekens, Marleen & Achmadi, Christina, 2003. "Pricing and supplier concentration in the private client segment of the audit market: Market power or competition?," The International Journal of Accounting, Elsevier, vol. 38(4), pages 431-455.
    2. Hope, Ole-Kristian & Langli, John Christian & Thomas, Wayne B., 2012. "Agency conflicts and auditing in private firms," Accounting, Organizations and Society, Elsevier, vol. 37(7), pages 500-517.
    3. Campbell, John Y, 1996. "Understanding Risk and Return," Journal of Political Economy, University of Chicago Press, vol. 104(2), pages 298-345, April.
    4. Simunic, Da, 1980. "The Pricing Of Audit Services - Theory And Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 18(1), pages 161-190.
    5. Johnson, W. Bruce & Lys, Thomas, 1990. "The market for audit services : Evidence from voluntary auditor changes," Journal of Accounting and Economics, Elsevier, vol. 12(1-3), pages 281-308, January.
    6. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    7. Kenneth J. Reichelt & Dechun Wang, 2010. "National and Office‐Specific Measures of Auditor Industry Expertise and Effects on Audit Quality," Journal of Accounting Research, Wiley Blackwell, vol. 48(3), pages 647-686, June.
    8. Andrew C. Ferguson & Jere R. Francis & Donald J. Stokes, 2006. "What matters in audit pricing: industry specialization or overall market leadership?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(1), pages 97-106, March.
    9. Pittman, Jeffrey A. & Fortin, Steve, 2004. "Auditor choice and the cost of debt capital for newly public firms," Journal of Accounting and Economics, Elsevier, vol. 37(1), pages 113-136, February.
    10. Sattar A. Mansi & William F. Maxwell & Darius P. Miller, 2004. "Does Auditor Quality and Tenure Matter to Investors? Evidence from the Bond Market," Journal of Accounting Research, Wiley Blackwell, vol. 42(4), pages 755-793, September.
    11. Wouter Dutillieux & Marleen Willekens, 2009. "The Effect of Auditor Industry Specialization on Audit Pricing in Belgium," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(2), pages 129-146.
    12. Elizabeth Carson & Neil Fargher, 2007. "Note on audit fee premiums to client size and industry specialization," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(3), pages 423-446, September.
    13. W. Dutillieux & M. Willekens, 2009. "The Effect of Auditor Industry Specialization on Audit Pricing in Belgium," Review of Business and Economic Literature, Intersentia, vol. 0(2), pages 129-147, June.
    14. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    15. Healy, Paul & Lys, Thomas, 1986. "Auditor changes following big eight mergers with non-big eight audit firms," Journal of Accounting and Public Policy, Elsevier, vol. 5(4), pages 251-265.
    16. Ettredge, M & Greenberg, R, 1990. "Determinants Of Fee Cutting On Initial Audit Engagements," Journal of Accounting Research, Wiley Blackwell, vol. 28(1), pages 198-210.
    17. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
    18. Numan, Wieteke & Willekens, Marleen, 2012. "An empirical test of spatial competition in the audit market," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 450-465.
    19. Michael Willenborg, 2002. "Discussion of “Brand Name Audit Pricing, Industry Specialization, and Leadership Premiums post†Big 8 and Big 6 Mergers†," Contemporary Accounting Research, John Wiley & Sons, vol. 19(1), pages 111-116, March.
    20. DeAngelo, Linda Elizabeth, 1981. "Auditor independence, `low balling', and disclosure regulation," Journal of Accounting and Economics, Elsevier, vol. 3(2), pages 113-127, August.
    21. Craswell, Allen T. & Francis, Jere R. & Taylor, Stephen L., 1995. "Auditor brand name reputations and industry specializations," Journal of Accounting and Economics, Elsevier, vol. 20(3), pages 297-322, December.
    22. Willekens, Marleen, 2003. "Reply to discussion of "Pricing and supplier concentration in the private client segment of the audit market: Market power or competition?"," The International Journal of Accounting, Elsevier, vol. 38(4), pages 461-464.
    23. W. Dutillieux & M. Willekens, 2009. "The Effect of Auditor Industry Specialization on Audit Pricing in Belgium," Review of Business and Economic Literature, Intersentia, vol. 54(2), pages 129-147, June.
    24. Francis, Jere R., 2004. "What do we know about audit quality?," The British Accounting Review, Elsevier, vol. 36(4), pages 345-368.
    25. David Hay & Debra Jeter, 2011. "The pricing of industry specialisation by auditors in New Zealand," Accounting and Business Research, Taylor & Francis Journals, vol. 41(2), pages 171-195, June.
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    Cited by:

    1. Martina K. Linnenluecke & Jacqueline Birt & Xiaoyan Chen & Xin Ling & Tom Smith, 2017. "Accounting Research in Abacus, A&F, AAR, and AJM from 2008–2015: A Review and Research Agenda," Abacus, Accounting Foundation, University of Sydney, vol. 53(2), pages 159-179, June.
    2. Averhals, Liesbeth & Van Caneghem, Tom & Willekens, Marleen, 2020. "Mandatory audit fee disclosure and price competition in the private client segment of the Belgian audit market," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    3. Liangbo Ma & Shiguang Ma, 2020. "Trade credit use and bank loan access: an agency theory perspective," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(2), pages 1835-1865, June.
    4. Elizabeth Carson & Steven Cahan, 2013. "Discussion of ‘Strategic pricing by Big 4 audit firms in private client segments’," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(4), pages 995-999, December.

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