Blouin et al. 2005 Examine 407 former Regression model Switching costs and factors Arthur agency benefits exist. involved with Anderson Clients who did not audit firm clients in the follow their former AA rotation US from audit teams have less Compustat discretionary accruals after the rotation. Clients, who did follow their former AA audit team, still had high levels of discretionary accruals. Audit Market Concentration Author(s) Year Object of Sample Methodology Outcome study Beattie et al. 2003 Examine the 2,180 Firms Time series of After the collapse of audit market listed on the market share Arthur Anderson Big4 concentration London stock measured by firms held 96% of the exchange from number of audits audit market. With AA April 2002 and audit fees this was 90%
Blouin et al. 2005 Examine factors involved with audit firm rotation 407 former Arthur Anderson clients in the US from Compustat Regression model Switching costs and agency benefits exist. Clients who did not follow their former AA audit teams have less discretionary accruals after the rotation. Clients, who did follow their former AA audit team, still had high levels of discretionary accruals. Audit Market Concentration Author(s) Year Object of study Sample Methodology Outcome Beattie et al. 2003 Examine the audit market concentration 2,180 Firms listed on the London stock exchange from April 2002 Time series of market share measured by number of audits and audit fees After the collapse of Arthur Anderson Big4 firms held 96% of the audit market. With AA this was 90%