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Le Vourc’h, J. and Morand, P. (2011) Executive Summary—Study on the Effects of the Implementation of the Acquis on Statutory Audits of Annual and Consolidated Accounts Including the Consequences on the Audit Market. ESCP Europe, Paris.

has been cited by the following article:

• TITLE: Big N and Non-Big N Audit Pricing Competitiveness in Japan during Transition from Big 4 to Big 3 Period

  AUTHORS: Frendy

  KEYWORDS: Client Segment Size, Audit Market Competition, Audit Fee, Big N, Japan

  JOURNAL NAME: Open Journal of Accounting, Vol.7 No.1, January 17, 2018

  ABSTRACT: The 2006 dissolution of PwC ChuoAoyama significantly changed market share composition of Japanese audit firms which marked the transition from Big 4 period to Big 3 period. This study aims to investigate audit market pricing competitiveness between Big N and non-Big N auditors using a sample of Japanese firms listed in the First Section of Tokyo Stock Exchange during the transition from Big 4 period (2004-2005) to Big 3 period (2006-2011). This paper analyzes audit market pricing competitiveness between Big N and non-Big N auditors by employing panel fixed effects multivariate regression with audit fee as the dependent variable and interaction between audit fee premium and client segment size as variable of interest while controlling for other variables affecting audit fee. The empirical results indicate a non-competitive audit pricing market between Big N and non-Big N auditors where Big N auditors earn increasingly higher audit fee as client segment size becomes larger.