Non-Big 4 Local Market Leadership and its Effect on Competition
Document Type
Article
Publication Date
5-2016
Publication Source
The Accounting Review
Abstract
This study examines local characteristics associated with non-Big 4 local market leadership and the impact of non-Big 4 local market leadership on competition. We identify non-Big 4 local market leaders by collecting accounting firm rankings from business publications for 46 of the largest metropolitan statistical areas from 2005–2010. These rankings are based on the number of local office employees and provide a more holistic measure of office size than measures based on public company audit fees. We find local supply and demand factors are significantly associated with non-Big 4 local market leadership and that non-Big 4 leadership is associated with lower overall audit fees in the local market. We also find that non-Big 4 leaders earn a fee premium over other non-Big 4 auditors. Our results imply that non-Big 4 leaders increase local market competition.
Inclusive pages
907-931
ISBN/ISSN
0001-4826
Copyright
Copyright © 2016, American Accounting Association
Publisher
American Accounting Association
Volume
91
Issue
3
Peer Reviewed
yes
eCommons Citation
Keune, Marsha B.; Mayhew, Brian W.; and Schmidt, Jamie J., "Non-Big 4 Local Market Leadership and its Effect on Competition" (2016). Accounting Faculty Publications. 67.
https://ecommons.udayton.edu/acc_fac_pub/67
COinS
Comments
Permission documentation on file.