IDEAS home Printed from https://ideas.repec.org/a/eee/jiaata/v21y2012i2p156-168.html
   My bibliography  Save this article

Size effects and audit pricing: Evidence from Germany

Author

Listed:
  • Fleischer, Rouven
  • Goettsche, Max

Abstract

Previous research into audit pricing has focused on the US and Australasian markets. This study aims to elaborate on the role played by various size effects on audit pricing using data from the German market.

Suggested Citation

  • Fleischer, Rouven & Goettsche, Max, 2012. "Size effects and audit pricing: Evidence from Germany," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 21(2), pages 156-168.
    • Handle: RePEc:eee:jiaata:v:21:y:2012:i:2:p:156-168
    DOI: 10.1016/j.intaccaudtax.2012.07.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1061951812000213
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intaccaudtax.2012.07.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Palmrose, Zv, 1986. "The Effect Of Nonaudit Services On The Pricing Of Audit Services - Further Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 24(2), pages 405-411.
    2. Anandhi S. Bharadwaj & Sundar G. Bharadwaj & Benn R. Konsynski, 1999. "Information Technology Effects on Firm Performance as Measured by Tobin's q," Management Science, INFORMS, vol. 45(7), pages 1008-1024, July.
    3. David Hay & Robert Knechel & Vivian Li, 2006. "Non‐audit Services and Auditor Independence: New Zealand Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(5‐6), pages 715-734, June.
    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. Francis, Jere R., 1984. "The effect of audit firm size on audit prices : A study of the Australian Market," Journal of Accounting and Economics, Elsevier, vol. 6(2), pages 133-151, August.
    6. Simunic, Da, 1984. "Auditing, Consulting, And Auditor Independence," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 679-702.
    7. Palmrose, Zv, 1986. "Audit Fees And Auditor Size - Further Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 24(1), pages 97-110.
    8. Rick Antle & Elizabeth Gordon & Ganapathi Narayanamoorthy & Ling Zhou, 2006. "The joint determination of audit fees, non-audit fees, and abnormal accruals," Review of Quantitative Finance and Accounting, Springer, vol. 27(3), pages 235-266, November.
    9. Simunic, Da, 1980. "The Pricing Of Audit Services - Theory And Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 18(1), pages 161-190.
    10. 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.
    11. Michael Firth, 1997. "The Provision of Non-audit Services and the Pricing of Audit Fees," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(3), pages 511-525.
    12. 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.
    13. Rick Antle & Elizabeth Gordon & Ganapathi Narayanamoorthy & Ling Zhou, 2002. "The Joint Determination of Audit Fees, Non-Audit Fees, and Abnormal Accruals," Yale School of Management Working Papers amz2502, Yale School of Management, revised 02 May 2006.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maarten Corten & Tensie Steijvers & Nadine Lybaert & Céline Coeckelbergs, 2021. "The Influence of the CEO on Auditor Choice in Private Firms: An Interplay of Willingness and Ability," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
    2. Guiral, Andrés & Ruiz, Emiliano & Choi, Hyun Jung, 2014. "Audit report information content and the provision of non-audit services: Evidence from Spanish lending decisions," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 23(1), pages 44-57.
    3. Shan, Yuan George & Troshani, Indrit & Richardson, Grant, 2015. "An empirical comparison of the effect of XBRL on audit fees in the US and Japan," Journal of Contemporary Accounting and Economics, Elsevier, vol. 11(2), pages 89-103.
    4. Alhassan Musah, 2017. "Determinants of Audit fees in a Developing Economy: Evidence from Ghana," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 716-730, November.
    5. Fleischer, Rouven & Goettsche, Max & Schauer, Maximilian, 2017. "The Big 4 premium: Does it survive an auditor change? Evidence from Europe," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 29(C), pages 103-117.
    6. Tache Marta, 2020. "‘Big 4’ influence on audit market," Central European Economic Journal, Sciendo, vol. 7(54), pages 143-156, January.
    7. Alhababsah, Salem & Yekini, Sina, 2021. "Audit committee and audit quality: An empirical analysis considering industry expertise, legal expertise and gender diversity," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 42(C).
    8. Anastasia Kraft & Kerstin Lopatta, 2016. "Auditor fees, discretionary book-tax differences, and tax avoidance," International Journal of Economics and Accounting, Inderscience Enterprises Ltd, vol. 7(2), pages 127-155.
    9. Markus Widmann & Florian Follert & Matthias Wolz, 2021. "What is it going to cost? Empirical evidence from a systematic literature review of audit fee determinants," Management Review Quarterly, Springer, vol. 71(2), pages 455-489, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vivien Beattie & Alan Goodacre & Ken Pratt & Joanna Stevenson, 2001. "The determinants of audit fees—evidence from the voluntary sector," Accounting and Business Research, Taylor & Francis Journals, vol. 31(4), pages 243-274.
    2. Bugeja, Martin, 2011. "Takeover premiums and the perception of auditor independence and reputation," The British Accounting Review, Elsevier, vol. 43(4), pages 278-293.
    3. David C. Hay & W. Robert Knechel & Norman Wong, 2006. "Audit Fees: A Meta†analysis of the Effect of Supply and Demand Attributes," Contemporary Accounting Research, John Wiley & Sons, vol. 23(1), pages 141-191, March.
    4. Mary Kehinde Salawu, 2017. "Factors Influencing Auditor Independence among Listed Companies in Nigeria: Generalized Method of Moments (GMM) Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 191-203, August.
    5. A. Rashad Abdel†Khalik, 1990. "The jointness of audit fees and demand for MAS: A self†selection analysis," Contemporary Accounting Research, John Wiley & Sons, vol. 6(2), pages 295-322, March.
    6. Yi-Fang Yang & Lee-Wen Yang & Min-Ning Lee, 2015. "Service Quality, Size, And Performance Of Audit Firms: Consideration Of Market Segments And Business Strategies," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(4), pages 51-66.
    7. Siddiqui, Javed & Zaman, Mahbub & Khan, Arifur, 2013. "Do Big-Four affiliates earn audit fee premiums in emerging markets?," Advances in accounting, Elsevier, vol. 29(2), pages 332-342.
    8. Yu (Elli) Zhang & David Hay & Claus Holm, 2016. "Non-audit services and auditor independence: Norwegian evidence," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1215223-121, December.
    9. Vieru, Markku & Schadewitz, Hannu, 2010. "Impact of IFRS transition on audit and non-audit fees: evidence from small and medium-sized listed companies in Finland," MPRA Paper 44664, University Library of Munich, Germany.
    10. Fleischer, Rouven & Goettsche, Max & Schauer, Maximilian, 2017. "The Big 4 premium: Does it survive an auditor change? Evidence from Europe," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 29(C), pages 103-117.
    11. 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.
    12. Timothy B. Bell & Rajib Doogar & Ira Solomon, 2008. "Audit Labor Usage and Fees under Business Risk Auditing," Journal of Accounting Research, Wiley Blackwell, vol. 46(4), pages 729-760, September.
    13. Schelleman, C.C.M., 2001. "Determinants of the profitability of audit engagements : an empirical study," Research Memorandum 037, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    14. Cédric Lesage & Sabine Ratzinger & Jaana Kettunen, 2012. "Struggle over joint audit: on behalf of public interest?," Post-Print hal-00935004, HAL.
    15. Schelleman, C.C.M. & Maijoor, S.J., 2000. "Benchmarking the production of audit services: an efficiency frontier approach," Research Memorandum 055, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    16. Duellman, Scott & Hurwitz, Helen & Sun, Yan, 2015. "Managerial overconfidence and audit fees," Journal of Contemporary Accounting and Economics, Elsevier, vol. 11(2), pages 148-165.
    17. Kharuddin, Khairul Ayuni Mohd & Basioudis, Ilias G & Farooque, Omar Al, 2021. "Effects of the Big 4 national and city-level industry expertise on audit quality in the United Kingdom," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 43(C).
    18. Bremert, Michael & Voeller, Dennis & Zein, Nicole, 2007. "Interdependencies between Elements of Governance and Auditing : Evidence from Germany," Papers 07-76, Sonderforschungsbreich 504.
    19. Michael Peel & Roydon Roberts, 2003. "Audit fee determinants and auditor premiums: evidence from the micro-firm sub-market," Accounting and Business Research, Taylor & Francis Journals, vol. 33(3), pages 207-233.
    20. Sang Cheol Lee & Jaewan Park & Mooweon Rhee & Yunkeun Lee, 2018. "Moderating Effects of Agency Problems and Monitoring Systems on the Relationship between Executive Stock Option and Audit Fees: Evidence from Korea," Sustainability, MDPI, vol. 10(11), pages 1-24, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jiaata:v:21:y:2012:i:2:p:156-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-international-accounting-auditing-and-taxation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.