Provision of non-audit services and individuals’ investment decisions: Experimental evidence

Lucy Ackert, Bryan K. Church and Arnold Schneider

Research in Accounting Regulation, 2008, vol. 20, issue C, 177-185

Abstract: We conduct an experiment to investigate whether concerns about an auditor’s independence and reputation affect individuals’ investment decisions. We examine whether the disclosure of audit and non-audit fees affects participants’ investment decisions. We find that investment in clients of a less reputable auditor is reduced relative to that in other companies when non-audit fees exceed audit fees. Participants’ investment in companies audited by a reputable auditor, however, is not affected by fee disclosures.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:20:y:2008:i:c:p:177-185

DOI: 10.1016/S1052-0457(07)00209-3

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