Auditor Industry Specialization, Client Bargaining Power, and Audit Pricing

By Jeffrey R. Casterella, Jere R. Francis, Barry L. Lewis, Paul L. Walker. 2004

367 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/2c19b550099b9b136c39f9d8c9b34e2e28d41a21

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Jere R. Francis
2. Thomas C. Omer
3. Dechun Wang
4. Hao Zhang
5. Ashok Robin
6. Kathleen A. Bentley
7. Debra C. Jeter
8. Nathan Y. Sharp

In Strategy and Management

1. Jere R. Francis
2. Thomas C. Omer
3. Dechun Wang
4. Kathleen A. Bentley
5. Hao Zhang
6. Ashok Robin
7. Nathan Y. Sharp
8. Kenneth L. Bills

Citations in the corpus

• Audit Markets, Fees and Production: Towards an Integrated View of Empirical Audit Research (2011, neutral): “[2007] find that in 2004, as in the pre-SOX period [Casterella et al. 2004], a specialist audit fee premium exists in the small but not the large client segment.”
• Business Strategy, Financial Reporting Irregularities, and Audit Effort (2013, background): “Although prior research suggests an association between auditor tenure (AUD TENURE) and audit fees (Casterella et al. 2004; Hay et al. 2006; Hribar et al. 2009), Hay et al.’s 2006 meta-analysis indicates mixed results; therefore, we do not predict a sign for the coefficient on AUD TENURE.”
• Do Industry-Specialist Auditors Influence Stock Price Crash Risk? (2015, positive): “Specifically, following some prior studies (Casterella et al. 2004; Dunn and Mayhew 2004), we classify an auditor as an industry specialist if the auditor audits firms that collectively have at least 20 percent of sales in a two-digit SIC-code industry.”
• Auditor Industry Specialization and Evidence of Cost Efficiencies in Homogenous Industries (2015, background): “Finally, we contribute to a growing body of research attempting to disentangle various effects of industry specialist auditors on audit pricing and quality (Casterella et al. 2004; Huang, Liu, Raghunandan, and Rama 2007; Cahan et al. 2008; Cahan et al. 2011; Fung et al. 2012).”
• The Pricing of National and City‐Specific Reputations for Industry Expertise in the U.S. Audit Market (2005, background): “More recently, Casterella et al. (2004) use private survey data from the early 1990s for a broader sample of industries and report evidence of a Big 5 industry-specialist premium, but only for smaller publicly listed companies.”