Kacer, Marek, Peel, David A.  ORCID: https://orcid.org/0000-0002-7444-390X, Peel, Michael J. ORCID: https://orcid.org/0000-0002-7444-390X and Wilson, Nicholas
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.
10.1111/jbfa.12310
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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.
| Item Type: | Article |
|---|---|
| Date Type: | Publication |
| Status: | Published |
| Schools: | Schools > Business (Including Economics) |
| Publisher: | Wiley |
| ISSN: | 0306-686X |
| Date of First Compliant Deposit: | 21 December 2017 |
| Date of Acceptance: | 18 December 2017 |
| Last Modified: | 20 Jan 2025 13:45 |
| URI: | https://orca.cardiff.ac.uk/id/eprint/107732 |
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