Lancaster EPrints

The changing structure of the market for audit services in the UK:a descriptive study

Beattie, Vivien and Fearnley, Stella (1994) The changing structure of the market for audit services in the UK:a descriptive study. British Accounting Review, 26 (4). pp. 301-322. ISSN 0890-8389

Full text not available from this repository.

Abstract

This paper is motivated by the debate which currently exists concerning the joint effect on the UK audit market of audit firm mergers and increasing competitive pressures. Based on a large sample of 2,079 domestic listed companies, measures of seller concentration are calculated for the period 1987 to 1991. The three principal factors which have contributed towards the change in concentration are identified as audit firm mergers, voluntary realignments (auditor switching) and the auditor distribution of newly listed companies. The relative impact of these factors on seller concentration is measured. The results of this study are placed in perspective via cross-study longitudinal and inter-country comparisons of concentration ratios and annualized rates of auditor change. Results indicate an increasing level of seller concentration in the UK market for audit services, which is also high relative to other countries, and a high and rising instability in client-auditor relationships. Policy implications are discussed.

Item Type: Article
Journal or Publication Title: British Accounting Review
Subjects:
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 66466
Deposited By: ep_importer_pure
Deposited On: 17 Sep 2013 09:11
Refereed?: Yes
Published?: Published
Last Modified: 12 Nov 2017 03:20
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/66466

Actions (login required)

View Item