Industry specialization and audit fees: a meta-analytic approach

2015 ◽  
Vol 28 (3) ◽  
pp. 419-435 ◽  
Author(s):  
Cristina de Fuentes ◽  
Eva Sierra
Keyword(s):  
Meta Analysis ◽  
Audit Fees ◽  
Future Research ◽  
Published Data ◽  
Industry Specialization ◽  
Content Type ◽  
Analysis Techniques ◽  
Audit Market ◽  
Regulatory Bodies ◽  
Auditor Specialization

Purpose The purpose of this paper is to provide a comprehensive review of the literature that links auditor’s industry specialization (AIS) and audit fees (AFs) in order to clarify the puzzle of published results and provide overall conclusions that would help in future research. Design/methodology/approach To achieve this goal, the authors applied meta-analysis techniques in order to summarize, quantify and evaluate the published data related to the association between AIS and AF. Findings The meta-results are more robust when the proxy for AIS is the audit firm’s market share above 20 percent or the audit firm is jointly the national and city leader. For US-based studies, results are homogeneous in the post-SOX period. This is likely due to the higher demand for specialized auditors. The authors found positive and homogeneous results in the upper and lower market segment, which led to the conclusion that the bargaining power of the big auditees does not fully counteract the higher auditor specialization costs. Although the authors identified a publication selection bias, a specialization coefficient of around 2.0 percent was estimated. Originality/value The conclusions are relevant for those researchers that would benefit from a structured and systematic review of the published results. The outcomes help to understand the somehow contradictory empirical evidence and to provide solid foundations for future hypothesis developments. This contribution is also relevant for the regulatory bodies, always watchful of audit market behavior and the evolution of audit prices.

Accounting for intangible assets – insights from meta-analysis of R&D research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anne Jeny ◽  
Rucsandra Moldovan
Keyword(s):  
Stock Market ◽  
Value Relevance ◽  
Meta Analysis ◽  
Future Research ◽  
Intangible Asset ◽  
Content Type ◽  
Main Research ◽  
Analysis Techniques ◽  
Research Questions ◽  
Robust Evidence

PurposeThe knowledge- and Internet-based economy demands a reexamination of the accounting treatment for intangibles and a thorough understanding of the empirical evidence on this topic.Design/methodology/approachThe study reviews the literature on research and development (R&D), a specific internally developed intangible asset, using meta-analysis techniques that allow to highlight the areas of consensus and disagreement in quantitative empirical results. The literature the authors review addresses four main research questions on (1) the determinants of the decision to capitalize R&D, (2) stock market-based outcomes of capitalizing R&D, (3) firm-based outcomes related to expensing R&D and (4) stock market-based outcomes of expensing R&D.FindingsThe authors find higher value relevance of capitalized compared with expensed R&D. There is, however, little robust evidence on the determinants of the capitalization decision and the characteristics of capitalizers.Originality/valueThe authors conclude by highlighting future research that can allow accounting academics to contribute to standard setting.

Auditor industry specialization and audit fees surrounding Section 404 implementation

2014 ◽  
Vol 13 (4) ◽  
pp. 353-370
Author(s):  
Damon Fleming ◽  
Kevin Hee ◽  
Robin N. Romanus
Keyword(s):  
Cost Savings ◽  
Audit Fees ◽  
Least Square ◽  
Valuable Insight ◽  
Section 404 ◽  
Industry Specialization ◽  
Content Type ◽  
Current Accounting ◽  
Auditor Industry Specialization ◽  
Auditor Specialization

Purpose – The purpose of this paper is to investigate the association between auditor industry specialization and audit fees surrounding Section 404 implementation. Design/methodology/approach – With a sample of 1,006 industrial firms over the 2003-2005 reporting periods, an ordinary least square regression model was used to regress change in audit fees on auditor specialization measure and other control variables. Findings – It was found that auditor industry specialization is negatively related to the change in audit fees during the first year of Sarbanes–Oxley Act (SOX) compliance (2003-2004). It was also found that there were no significant cost savings associated with auditor industry specialization in the second year of SOX compliance (2004-2005). Practical implications – These results suggest that industry-specific expertise may enable auditors to adapt more efficiently to new significant audit standards and regulations, but that such efficiencies are likely to be most pronounced during the initial implementation year. Originality/value – Auditor competition and auditor specialization are at the forefront of today’s ever-changing accounting industry. Analysis of a contemporary auditing issue (auditor specialization) in the context of major legislation (SOX) provides a research setting that gives both academics and practitioners valuable insight toward how future legislation can impact current accounting industry issues such as the increasing need to have more expertise.

Audit partner specialization and audit fees

2014 ◽  
Vol 29 (6) ◽  
pp. 513-526 ◽  
Author(s):  
Albert L. Nagy
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Content Type ◽  
Audit Market ◽  
Significant Difference ◽  
The Us ◽  
Auditor Specialization ◽  
Office Level

Purpose – The purpose of this paper is to examine partner specialization effects on audit fees in the US audit market. Design/methodology/approach – This study exploits the unique environment created from the demise of Andersen to examine the effect of partner specialization on audit fees in the US audit market. An ordinary least squares regression was estimated from a sample of ex-Andersen clients that assumingly followed their ex-Andersen audit partner to the new audit firm. Findings – The results show significant positive relations for both audit partner- and office-level specialization and audit fees and suggest that auditor specialization at both the partner- and local office-level demand a fee premium in the US audit markets. Furthermore, the results do not show a significant difference between partner- and office-level specialization effects on audit fees. Originality/value – This study contributes to the audit quality literature by examining the effects of auditor specialization at both the office and partner levels on audit fees within a developed market. The results of this study should be of interest to academics, investors and regulators and help them in their assessments of audit quality.

Audit fee stickiness

2013 ◽  
Vol 29 (1) ◽  
pp. 2-26 ◽  
Author(s):  
Charl de Villiers ◽  
David Hay ◽  
Zhizi (Janice) Zhang
Keyword(s):  
Audit Fees ◽  
Audit Committees ◽  
Future Research ◽  
Audit Pricing ◽  
Content Type ◽  
Audit Market ◽  
Audit Fee ◽  
The Usa ◽  
The Difference ◽  
One Year

Purpose – This study aims to contribute to the understanding of audit pricing and the competitiveness of the audit fee market by examining audit fee stickiness. Design/methodology/approach – The authors explore the price behavior of audit fees in response to changes in the variables that are usually seen as their determinants, such as size, complexity, and risk in order to examine audit fee stickiness and the competitiveness of the market for audit services. Findings – The authors find that audit fees are sticky, i.e. audit fees do not immediately or fully adjust to changes in their determinants. Audit fees also respond to changes leading to an increase more quickly than they respond to changes leading to a decrease. The difference between positive and negative fee adjustments declines over periods longer than one year and is no longer significant when four-year periods are considered. Research limitations/implications – The study is limited to companies in the USA from 2000 to 2008. Future research should examine this issue in other settings and periods. Practical implications – The results suggest that the audit market is competitive, at least in the medium term. Originality/value – The study helps to explain why the audit fee model does not fully explain the level of audit fees; why audit fees are more likely to be too high than too low; and why auditor switches are commonly associated with larger changes in audit fees. The findings provide evidence that may be useful to managers and audit committees when managing their audit fees, auditors when considering the risks and opportunities associated with changes in the determinants of audit fees, and regulators concerned with the competitiveness of the audit market.

IFRS adoption and auditing: a review

2016 ◽  
Vol 24 (3) ◽  
pp. 338-361 ◽  
Author(s):  
Hichem Khlif ◽  
Imen Achek
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Research Literature ◽  
Future Research ◽  
Audit Report ◽  
Content Type ◽  
Auditor Choice ◽  
Audit Market ◽  
Ifrs Adoption ◽  
The Future

Purpose The purpose of this paper is to review the empirical research literature dealing with International Financial Reporting Standards (IFRS) and auditing. The authors identify four main topics related to the effect of IFRS adoption on audit fees, audit market and audit report lag and the influence of auditor choice on IFRS compliance. Design/methodology/approach For each reviewed stream of research, the authors present its theoretical underpinning and summarize its main results. Findings Based on 26 empirical studies, the review reveals four main findings. First, IFRS adoption is associated with increased audit fees. Second, IFRS adoption has had an effect on audit market through auditor choice, audit switching and audit market concentration. Third, IFRS adoption has increased audit report lag. Finally, the authors document that audit quality, as proxied by auditor type, may play an important role in enforcing the compliance with IFRS. Practical implications For regulators the review highlights that IFRS adoption is associated with several effects dealing with audit cost (audit fees), audit efficiency (audit report lag) and may benefit audit firms with international affiliation compared to local ones and this may inform regulators in settings that plan to adopt IFRS in the future. Originality/value This literature review represents a historical record and an introduction for researchers who aim to investigate this topic in the future since the authors provide specific guidance for future research avenues for these reviewed strands of research and other unexplored topics related to auditing and IFRS.

Does the good lives model work? A systematic review of the recidivism evidence

2021 ◽  
Vol 23 (3) ◽  
pp. 285-300
Author(s):  
Jenna Zeccola ◽  
Sally Fiona Kelty ◽  
Douglas Boer
Keyword(s):  
Meta Analysis ◽  
Future Research ◽  
Correct Treatment ◽  
Recidivism Rates ◽  
Good Lives Model ◽  
Content Type ◽  
Reducing Recidivism ◽  
Prison Community ◽  
Treatment Dosage ◽  
Good Lives

Purpose The purpose of this paper is to evaluate the efficacy of good lives model (GLM) interventions on the recidivism outcomes of convicted offenders. Design/methodology/approach The review adhered to preferred reporting items for systematic reviews and meta-analysis and Cochrane guidelines. Digital databases were searched and articles reporting outcomes of the GLM amongst convicted offenders and outcomes including recidivism data and pre-post measures of dynamic risk were included in a narrative synthesis. Findings Of 1,791 articles screened, only six studies met the criteria for review. Key findings were: in half the reviewed studies, GLM did not increase recidivism risk; in half the reviewed studies, only when the correct treatment dosage was applied that some evidence of risk reduction was found; there was limited support for GLM increasing or sustaining motivation for resistance from reoffending. Research for the review was limited and support for the GLM in reducing recidivism rates was not established. Practical implications In this 2021 review, the authors examined the efficacy of the GLM in reducing recidivism. This addresses a gap in the literature. The authors found that there is insufficient evidence to suggest that the GLM can reduce recidivism. This has implications for practitioners who wish to deliver evidence-based practices in prison/community settings. There is currently not enough peer-reviewed evidence to unequivocally confirm the efficacy of the GLM. The authors recommended additional quality programme outcome research be carried out. Originality/value To the best of the authors’ knowledge, this study is the first to assess quantitative and qualitative studies on the efficacy of the GLM and provides foundations for future research.

Reconfigurable manufacturing system: a systematic review, meta-analysis and future research directions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rajesh Pansare ◽  
Gunjan Yadav ◽  
Madhukar R. Nagare
Keyword(s):  
Manufacturing System ◽  
Meta Analysis ◽  
Future Research ◽  
Future Trends ◽  
Reconfigurable Manufacturing ◽  
Research Papers ◽  
Reconfigurable Manufacturing System ◽  
Content Type ◽  
Related Research ◽  
And Performance

Purpose Uncertainties in manufacturing and changing customer demands force manufacturing industries to adopt new strategies, such as the reconfigurable manufacturing system (RMS). To improve the implementation and performance of RMS, it is necessary to review the available literature and identify future trends in this field. This paper aims to analyze existing literature and to see trends in RMS-related research. Design/methodology/approach The systematic literature review and analysis of RMS-related research papers from 1999 to 2020 is carried out in this literature. The selected studies are analyzed based on the year of publication, journals, publishers, active authors, research design, countries, enablers, barriers, performance evaluation parameters and universities. Findings After the analysis of selected RMS-related research papers, the top countries, universities, journals, publishers and authors are identified in this domain. Research themes and trends in research are identified in this study. Besides, it has been noted that there is a need for further research in this domain and for the creation of a generalized framework that can guide researchers and practitioners to increase RMS adoption. Practical implications Research insights, guidance and observations from this paper are provided to RMS-related researchers and practitioners. Important research gaps are identified in this study, which can provide direction for future research and trends in RMS research. Originality/value The study presented focuses mainly on the method of collecting, organizing, capturing, interpreting and analyzing data to provide more insight into RMS to identify future trends in research.

Research on capital structure determinants: a review and future directions

2017 ◽  
Vol 13 (2) ◽  
pp. 106-132 ◽  
Author(s):  
Satish Kumar ◽  
Sisira Colombage ◽  
Purnima Rao
Keyword(s):  
Capital Structure ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Secondary Data ◽  
Theoretical Models ◽  
Order Theory ◽  
Organizational Level ◽  
Future Research ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to study the status of studies on capital structure determinants in the past 40 years. This paper highlights the major gaps in the literature on determinants of capital structure and also aims to raise specific questions for future research. Design/methodology/approach The prominence of research is assessed by studying the year of publication and region, level of economic development, firm size, data collection methods, data analysis techniques and theoretical models of capital structure from the selected papers. The review is based on 167 papers published from 1972 to 2013 in various peer-reviewed journals. The relationship of determinants of capital structure is analyzed with the help of meta-analysis. Findings Major findings show an increase of interest in research on determinants of capital structure of the firms located in emerging markets. However, it is observed that these regions are still under-examined which provides more scope for research both empirical and survey-based studies. Majority of research studies are conducted on large-sized firms by using secondary data and regression-based models for the analysis, whereas studies on small-sized firms are very meager. As majority of the research papers are written only at the organizational level, the impact of leverage on various industries is yet to be examined. The review highlights the major determinants of capital structure and their relationship with leverage. It also reveals the dominance of pecking order theory in explaining capital structure of firms theoretically as well as statistically. Originality/value The paper covers a considerable period of time (1972-2013). Among very few review papers on capital structure research, to the best of authors’ knowledge; this is the first review to identify what is missing in the literature on the determinants of capital structure while offering recommendations for future studies. It also synthesize the findings of empirical studies on determinants of capital structure statistically.

The relationship between work engagement and workaholism: a systematic review and meta-analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yunsoo Lee ◽  
Jae Young Lee ◽  
Jin Lee
Keyword(s):  
Systematic Review ◽  
Work Engagement ◽  
Design Methodology ◽  
Meta Analysis ◽  
Future Research ◽  
Content Type ◽  
Extant Literature ◽  
Heavy Work ◽  
Person Centered Approach ◽  
The Relationship

Purpose The purpose of this study is to clarify the relationship between two sub-constructs of heavy work investment: work engagement and workaholism. Design/methodology/approach The authors conducted a systematic review and meta-analysis to synthesize and critically assess existing research on the relationship between these concepts. Findings The review revealed three major shortcomings of the extant literature: a dichotomous perspective, variations in measurements and the unaddressed complexity of the relationship. Originality/value Based on these findings, this study provides a discussion on the limitations and suggestions for future research on work engagement and workaholism, including using a person-centered approach.

The antecedents and consequences of financial literacy: a meta-analysis

2019 ◽  
Vol 37 (6) ◽  
pp. 1462-1479 ◽  
Author(s):  
Fernando De Oliveira Santini ◽  
Wagner Junior Ladeira ◽  
Frederike Monika Budiner Mette ◽  
Mateus Canniatti Ponchio
Keyword(s):  
Financial Literacy ◽  
Meta Analysis ◽  
Future Research ◽  
Cultural Economic ◽  
Content Type ◽  
Credit Score ◽  
Analytical Review ◽  
Financial Behaviour ◽  
Antecedents And Consequences ◽  
The Impact

Purpose The purpose of this paper is to determine the antecedents and consequences of financial literacy by using meta-analytic techniques. Design/methodology/approach The authors conducted a meta-analysis of 44 valid studies, which generated a total of 690 observations (effect sizes). Findings The findings showed that the factors influencing financial literacy were as follows: educational level, financial attitude, financial knowledge, financial behaviour, gender, household income and investments. The consequences of financial literacy were the behaviour of incurring avoidable credit and checking fees, credit score, and the willingness to take investment risks. The authors also find some methodological, cultural, economic and theoretical moderations effects between financial literacy and antecedent/consequent constructs. Research limitations/implications This meta-analysis reviewed the relationships found worldwide in the literature on financial literacy. The authors also identified new avenues for future research. Some specific limitations, such as the non-use of qualitative studies, are registered. Originality/value This research tested the impact of the antecedents, consequences and moderators of financial literacy via a meta-analytical review. This meta-analysis contributes to the marketing and financial literature by offering a set of empirical generalisations about the direct and moderation effects investigated.

Sign in / Sign up

Export Citation Format

Share Document