Title: An empirical test of spatial competition in the audit market
Authors: Numan, Wieteke ×
Willekens, Marleen #
Issue Date: 2012
Series Title: Journal of Accounting & Economics vol:53 issue:1-2 pages:450-465
Abstract: This study empirically examines the effects of competition through differentiation on audit pricing. Based on prior economic theory on differentiated-product markets (e.g., Hotelling, 1929; Tirole, 1988), we hypothesize that audit fees are affected by an auditor’s relative location in a market segment. We define audit markets per industry segment and U.S. Metropolitan Statistical Area and specify an auditor’s industry location relative to the client (auditor-client industry alignment) and relative to the closest competitor (industry market share distance to closest competitor). We find that audit fees increase in both auditor-client industry alignment and industry market share distance to the closest competitor.
ISSN: 0165-4101
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center Accountancy, Leuven
× corresponding author
# (joint) last author

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