The Effects of Concentration on Competition and Efficiency: Some Evidence from the French Audit Market

Géraldine Broye ； Laurent Weill

《Advances in Quantitative Analysis of Finance and Accounting》 8期 (2010/06) Pp. 1-22

https://doi.org/10.6293/AQAFA.2010.08.01

並列摘要

This paper aims at investigating the effects of concentration on competition and cost efficiency in the French audit market. Competition is measured with the Rosse-Panzar model, while cost efficiency is estimated with the stochastic frontier approach. Cost efficiency levels are estimated at around 75%, while the nature of competition appears to be monopolistic. Dynamic analysis shows a reduction in competition, and a decrease in cost efficiency for Big-Four and non-Big-Four firms between 1999 and 2003. We therefore provide support for a negative impact of concentration on competition and cost efficiency.

並列關鍵字

Auditing ； Audit market concentration ； Audit industry structure ； Efficiency

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