Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1006605 | Research in Accounting Regulation | 2008 | 9 Pages |
Abstract
ABSTRACTWe conduct an experiment to investigate whether concerns about an auditor’s independence and reputation affect individuals’ investment decisions. We examine whether the disclosure of audit and non-audit fees affects participants’ investment decisions. We find that investment in clients of a less reputable auditor is reduced relative to that in other companies when non-audit fees exceed audit fees. Participants’ investment in companies audited by a reputable auditor, however, is not affected by fee disclosures.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Lucy F. Ackert, Bryan K. Church, Arnold Schneider,