Strategic pricing by Big 4 audit firms in private client segments

Material TypeArticleLanguageEnglish
TitleStrategic pricing by Big 4 audit firms in private client segments Author(S)Wouter Dutillieux (Author)
Abstract  We examine how Big 4 auditors compete for new private clients. We find evidence suggesting that Big 4 auditors offer fee discounts to attract non-Big 4 private clients to experience attributes of their brand name audit services. We also find that to attract clients from competing Big 4 suppliers, Big 4 auditors target fee discounts at clients in industries where they are the market leader. Our results further indicate that the Big 4 industry leaders target fee discounts to fast-growing clients and are able to charge these clients significant price fee increases in the second mandate period (after 3 years) ...Paginationp 961-994
SubjectManagementDescriptorsFinance
Journal TitleAccounting & Finance  
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