Journal of Accounting and Economics Vol. 20 No. 3 1995
Auditor brand name reputations and industry specializations
Abstract
The development of both brand name reputation and industry specialization by Big 8 auditors is argued to be costly and therefore to increase audit fees. For a sample of 1484 Australian publicly listed companies we estimate audit fee premia for Big 8 auditors. On average, industry specialist Big 8 auditors earn a 34% premium over nonspecialist Big 8 auditors, and the Big 8 brand name premium over non-Big 8 auditors averages around 30%. These results support that industry expertise is a dimension of the demand for higher quality Big 8 audits and a basis for within Big 8 product differentiation.
- DOI
- 10.1016/0165-4101(95)00403-3
- Volume
- 20
- Issue
- 3
- Pages
- 297-322
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib