Kacer, M orcid.org/0000-0002-3544-0327, Peel, DA, Peel, MJ et al. (1 more author) (2018) On the Persistence and Dynamics of Big 4 Real Audit Fees: Evidence from the UK. Journal of Business Finance and Accounting, 45 (5-6). pp. 714-727. ISSN 0306-686X
Abstract
Despite the huge audit pricing literature, there is a dearth of evidence on the temporal dynamics of audit fee adjustments and the persistence of audit fees. Based on a sample of 76,867 panel observations for a sample of UK companies audited by the Big 4 over the period 1998 to 2012, we employ consistent lagged dependent variable panel estimators to provide new evidence on the persistence and dynamics of real Big 4 audit fees. Contrary to extant research, which assumes that audit fees adjust immediately in a single period, our empirical results indicate that Big 4 real audit fees are persistent, being partly dependent on their previous realisations. We conclude that static audit fee models omit a potentially important temporal dimension of audit pricing behaviour and that further research is warranted into dynamic audit fee models across other jurisdictions.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 John Wiley & Sons Ltd. This is the peer reviewed version of the following article: On the persistence and dynamics of Big 4 real audit fees: Evidence from the UK,Marek Kacer, David A. Peel, Michael J. Peel, Nicholas Wilson, which has been published in final form at https://doi.org/10.1111/jbfa.12310. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. |
Keywords: | adjustment speed, Big 4, dynamic panel estimates, listed and unlistedcompanies, partial adjustment, persistence, real audit fees |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 21 Dec 2017 13:56 |
Last Modified: | 11 Jan 2020 01:38 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/jbfa.12310 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:125450 |